Annual Report and
Financial Statements
2021
Entity
resolution
Clustering
Machine
learning
Annual report and financial statements 2021
About us
RELX is a global provider of information-based
analytics and decision tools for professional and
business customers, enabling them to make better
decisions, get better results and be more productive.
Our purpose is to benefit society by developing products
that help researchers advance scientific knowledge;
doctors and nurses improve the lives of patients;
lawyers promote the rule of law and achieve justice
and fair results for their clients; businesses and
governments prevent fraud; consumers access financial
services and get fair prices on insurance; and customers
learn about markets and complete transactions.
Our purpose guides our actions beyond the products
that we develop. It defines us as a company. Every day
across RELX our employees are inspired to undertake
initiatives that make unique contributions to society
and the communities in which we operate.
Forward-looking statements
This Annual Report contains forward-looking statements within the meaning of Section 27A of the US Securities Act of 1933, as amended, and Section 21E of the US
Securities Exchange Act of 1934, as amended. These statements are subject to risks and uncertainties that could cause actual results or outcomes of RELX PLC
(together with its subsidiaries, “RELX”, “we” or “our”) to differ materially from those expressed in any forward-looking statement. We consider any statements that
are not historical facts to be “forward-looking statements”. The terms “outlook”, “estimate”, “forecast”, “project”, “plan”, “intend”, “expect”, “should”, “could”, “will”,
“believe”, “trends” and similar expressions may indicate a forward-looking statement. Important factors that could cause actual results or outcomes to differ
materially from estimates or forecasts contained in the forward-looking statements include, among others: the impact of the Covid-19 pandemic as well as other
pandemics or epidemics; current and future economic, political and market forces; changes in law and legal interpretations affecting RELX intellectual property
rights and internet communications; regulatory and other changes regarding the collection, transfer or use of third-party content and data; changes in the payment
model for RELX products; demand for RELX products and services; competitive factors in the industries in which RELX operates; inability to realise the future
anticipated benefits of acquisitions; significant failure or interruption of RELX systems; exhibitors’ and attendees’ ability and desire to attend face-to-face events and
availability of event venues; changes in economic cycles, severe weather events, natural disasters and terrorism; compromises of RELX cyber security systems or
other unauthorised access to our databases; failure of third parties to whom RELX has outsourced business activities; inability to retain high-quality employees and
management; legislative, fiscal, tax and regulatory developments; exchange rate fluctuations; and other risks referenced from time to time in the filings of RELX PLC
with the US Securities and Exchange Commission. You should not place undue reliance on these forward-looking statements, which speak only as of the date of this
Annual Report. Except as may be required by law, we undertake no obligation to publicly update or release any revisions to these forward-looking statements to
reflect events or circumstances after the date of this Annual Report or to reflect the occurrence of unanticipated events.
RELX Annual report and financial statements 2021
1
2021 Financial highlights
Chair’s statement
Overview*
2
3
4 Chief Executive Officer’s report
5 RELX business overview
Market segments*
14 Risk
20 Scientific, Technical & Medical
26 Legal
32 Exhibitions
Corporate responsibility*
39 Corporate responsibility overview
Financial review*
60 Chief Financial Officer’s report
66 Principal and emerging risks
Governance
72 Board Directors
74 RELX Senior Executives
76 Chair’s introduction to corporate governance
77 Corporate governance review
97 Report of the Nominations Committee
100 Directors’ remuneration report
122 Report of the Audit Committee
125 Directors’ report
Financial statements
and other information
130 Independent auditor’s report
138 Consolidated financial statements
185 RELX PLC annual report and financial statements
190 Summary financial information in euros
191 Summary financial information in US dollars
192 Alternative performance measures
201 Shareholder information
IBC 2022 financial calendar
* Comprises the Strategic Report in accordance with The (UK)
Companies Act 2006 (Strategic Report and Directors’ Report)
Regulations 2013.
Contents
To download the full Annual Report and Financial
Statements, and for further information about
our businesses visit relx.com
Market segmentsGovernanceFinancial statements and other informationFinancial reviewCorporate ResponsibilityOverview 2
2021 Financial highlights
§ Underlying revenue growth of +7%
§ Underlying adjusted operating profit growth of +13%
§ Constant currency adjusted profit before tax growth of +15%
§ Reported operating profit £1,884m (2020: £1,525m)
§ Reported profit before tax £1,797m (2020: £1,483m)
§ Adjusted EPS 87.6p (2020: 80.1p), constant currency growth +17%
§ Reported EPS 76.3p (2020: 63.5p)
§ Net debt/EBITDA 2.4x; adjusted cash flow conversion 101%
§ Proposed full year dividend 49.8p (2020: 47.0p) +6%
RELX financial summary
REPORTED FIGURES
For the year ended 31 December
Revenue
Operating profit
Profit before tax
Net profit attributable to RELX PLC shareholders
Net margin
Net debt
Reported earnings per share
Ordinary dividend per RELX PLC share
ADJUSTED FIGURES
For the year ended 31 December
Operating profit
Operating margin
Profit before tax
Net profit attributable to RELX PLC shareholders
Net margin
Cash flow
Cash flow conversion
Return on invested capital
Adjusted earnings per share
2021
£m
7,244
1,884
1,797
1,471
20.3%
6,017
76.3p
49.8p
2021
£m
2,210
30.5%
2,077
1,689
23.3%
2,230
101%
11.9%
87.6p
2020
£m
7,110
1,525
1,483
1,224
17.2%
6,898
63.5p
47.0p
2020
£m
2,076
29.2%
1,916
1,543
21.7%
2,009
97%
10.8%
80.1p
Change at
constant
currencies
+8%
Change
underlying
+7%
Change at
constant
currencies
Change
underlying
+13%
+13%
+15%
+17%
+20%
Change
+2%
+24%
+21%
+20%
+20%
+6%
Change
+6%
+8%
+9%
+11%
+9%
+17%
The shares of RELX PLC are traded on the London, Amsterdam and New York stock exchanges. RELX PLC and its subsidiaries, joint ventures and associates are together
known as ‘RELX’.
RELX uses adjusted and underlying figures as additional performance measures. Adjusted figures primarily exclude the amortisation of acquired intangible assets and
other items related to acquisitions and disposals, and the associated deferred tax movements. In 2020, we also excluded exceptional costs in the Exhibitions business.
Reconciliations between the reported and adjusted figures are set out on pages 193 to 197. Underlying growth rates are calculated at constant currencies, excluding
the results of acquisitions until 12 months after purchase, and excluding the results of disposals and assets held for sale. Underlying revenue growth rates also
exclude exhibition cycling. Constant currency growth rates are based on 2020 full-year average and hedge exchange rates.
RELX Annual report and financial statements 2021 | Overview RELX Annual report and financial statements 2021
3
Chair’s statement
I have been impressed by RELX’s
resilience, the strength of our
strategy and business model,
as well as our ability to innovate
and continue to deliver value to
our customers.
Paul Walker, Chair
I am delighted to succeed Sir Anthony Habgood as chair of RELX.
Anthony stood down in March 2021 having served the company
since June 2009. Throughout his tenure he provided strong
leadership to the Board and exemplary counsel to the executive
team. On behalf of the Board, I would like to thank Anthony for
the outstanding contribution he made to the success of RELX
during his tenure.
The Board
Linda Sanford, who has been on the Board since 2012, will be
stepping down as a Non-Executive Director after the annual
general meeting in April 2022. Linda served with distinction
on the remuneration and corporate governance committees,
and I would like to thank her for her exceptional service to
RELX and her support and advice.
During my first year at RELX, I have been impressed by RELX’s
resilience, the strength of our strategy and business model,
as well as our ability to innovate and continue to deliver value
to our customers. As I met more members of the leadership
team, the depth of talent at RELX quickly became apparent.
I am particularly proud of the company’s response to the global
Covid-19 pandemic. Over the last few years, the health and
well-being of our employees has been paramount, a reflection of
RELX’s strong culture and values. At the same time, our business
has also contributed hugely to the understanding of Covid-19 and
its public health implications, helping our customers and broader
society mitigate its effects. Elsevier’s free Novel Coronavirus
Information Centre provided over 175million downloads during
the year while a product from LexisNexis Risk Solutions provided
researchers, academics and the public with a dashboard that
analysed open-sourced data from Johns Hopkins University
and other sources.
During 2021, RELX continued to execute on its strategic priorities
aimed at achieving better customer outcomes, a higher growth
profile, improving returns and ensuring a positive impact on society.
Underlying revenue growth was 7%, with underlying adjusted
operating profits up 13% as we continued to grow revenues ahead
of costs. Adjusted earnings per share grew 9% in sterling to 87.6p
(80.1p), and 17% at constant currencies. Reported earnings per
share were 76.3p (63.5p).
Dividends
We are proposing a full year dividend increase of 6% to 49.8p.
The long-term dividend policy is unchanged.
Balance sheet
Net debt was £6.0bn at 31 December 2021, down from £6.9bn last
year. Net debt/EBITDA including pensions was 2.4x, compared
with 3.3x in 2020. Capital expenditure represented 5% of revenues.
Share buybacks
The share buyback was suspended in April 2020. In 2022, we
intend to resume purchases by deploying a total of £500m on
share buybacks.
Environment, Social and Governance
RELX has recognised the importance of corporate responsibility
(CR) for two decades. The Board prioritises the highest standards
of CR as an integral component of the overall performance of the
company. Accordingly, throughout the year, the Board discussed
CR issues and tracked performance on annual and longer-run
CR objectives.
For the first time, we held a CR teach-in to help investors who
are increasingly engaging with us on Environmental, Social and
Governance (ESG) issues. The event provided an overview of
CR governance at RELX and insights on our unique contributions
to society which is at the heart of our business. When I met with
investors afterwards, they expressed their appreciation for the
insights provided.
During the year, our ESG performance was again recognised
by third parties. RELX held a AAA MSCI ESG rating for a sixth
consecutive year and was weighted fourth in MSCI’s UK ESG
Leaders Index; ranked 11th out of 14,000+ companies globally
and first in our sector by Sustainalytics; came fourth in the
Responsibility100 Index, a ranking of the FTSE 100 on performance
against the UN Sustainable Development Goals; was third in
sector in the Dow Jones Sustainability Index; and was one of 38
LEAD companies of the UN Global Compact among more than
12,000 signatories.
We challenge ourselves every year to ensure that we continue to
meet the highest CR standards now and in the future and that we
continue to improve on our key measures (full details are available
in the 2021 RELX Corporate Responsibility Report).
Finally, I would like to thank all RELX employees for their
achievements in 2021. I have every confidence that with their
efforts, RELX will continue to grow and prosper in the years to come.
Paul Walker
Chair
Market segmentsGovernanceFinancial statements and other informationFinancial reviewCorporate ResponsibilityOverview 4
Chief Executive Officer’s report
RELX delivered strong financial
results in 2021. By executing on
our strategy, we are striving to
deliver better outcomes for our
customers, a higher growth profile,
improving returns, and a positive
overall impact on society.
Erik Engstrom, Chief Executive Officer
On internal metrics, RELX employs over 33,000 people and the
workforce is split evenly between men and women. In 2021, the
number of women in managerial roles increased to represent
44% of the total. In the supply chain we have a rigorous supplier
code of conduct following applicable laws and best practice in
areas such as human rights, labour and the environment. 2021
saw a further increase in the number of signatories to the code.
On the environment, our emissions have declined for a number
of years. Staff working remotely for much of the time has clearly
impacted the last two years, with 2021 emissions again showing
a decline. As well as reducing our gross emissions, we have
extended our offsetting, now being net zero across scopes 1 and 2,
and from scope 3, net zero for business flights, cloud computing,
home working and staff commuting.
We believe we have the most significant impact when we focus on
our unique contributions. They include applying our expertise to
areas such as universal, sustainable access to information,
advancing science and health, protection of society, promotion of
the rule of law and access to justice, and fostering communities.
In 2021, we expanded the research material available on the free
Elsevier Novel Coronavirus Information Centre, which saw over
175m downloads in the year. We significantly increased the volume
of content on the RELX SDG Resource Centre and Risk extended
the ADAM missing child alert service in the US.
Our commitment to corporate responsibility is recognised by
external reporting agencies. We rated AAA with MSCI for a sixth
consecutive year, achieved the top ranking among media
companies globally with Sustainalytics and maintained our
4th position in the Responsibility100 Index.
Outlook
Following the improved performance in 2021 across the company,
we expect 2022 full-year underlying growth rates in revenue and
adjusted operating profit, as well as constant currency growth in
adjusted earnings per share, to remain above historical trends.
Erik Engstrom
Chief Executive Officer
2021 progress
RELX delivered strong financial results in 2021 and we made
further operational and strategic progress. Our strategic direction
remains unchanged. We remain focused on the development of
increasingly sophisticated information-based analytics and
decision tools that deliver enhanced value to our professional and
business customers across all market segments. Our primary
focus is on organic growth, supported by targeted acquisitions.
By executing on our strategy, we are striving to deliver better
outcomes for our customers, a higher growth profile for the
company, improving returns for our shareholders, and a positive
overall impact on society.
Underlying revenue growth was 7%. Underlying adjusted
operating profit growth was 13%, and adjusted earnings per
share growth was 17% at constant currencies. All four business
areas delivered improved underlying revenue growth in 2021, with
underlying adjusted operating profit growth in line with, or ahead
of, underlying revenue growth in the three largest business areas,
and a return to profitability in Exhibitions.
The group remains highly cash generative and our priorities
for use of cash are unchanged. Our first priority is organic
development, and we continue to invest consistently in the
business with capital expenditure around 5% of revenues; second,
to augment that organic development with selective acquisitions;
third, over the longer term, to grow dividends broadly in line with
earnings per share while targeting cover of at least two times;
fourth to maintain leverage in a comfortable range; and finally to
use any remaining cash to buy back shares. For 2021, our adjusted
cash conversion was 101%, our leverage ratio was reduced to 2.4x
and we are proposing an increase in the pound sterling full-year
dividend of 6%. While no share buybacks were made in 2021, we
intend to deploy £500m on share buybacks in 2022, reflecting our
strong financial position and cash flow profile.
Corporate responsibility
We continued to build on our strong corporate responsibility
performance during the year, further improving on our
key internal metrics and extending the scope of our unique
contributions. This was again recognised in the high ESG
ratings ascribed to us by a number of external agencies.
RELX Annual report and financial statements 2021 | Overview RELX Annual report and financial statements 2021
5
RELX business overview
Strategic direction
Our number one strategic priority continues to be the organic
development of increasingly sophisticated information-based
analytics and decision tools that deliver enhanced value to
professional and business customers across the industries
that we serve.
Our goal is to help our customers make better decisions, get
better results and be more productive. We do this by leveraging
a deep understanding of our customers to create innovative
solutions which combine content and data with analytics and
technology on global platforms.
We aim to build leading positions in long-term global growth
markets and leverage our skills, assets and resources across
RELX, both to build solutions for our customers and to pursue
cost efficiencies.
We are systematically migrating all of our information solutions
across RELX towards higher value-add decision tools, adding
broader data sets, embedding more sophisticated analytics
and leveraging more powerful technology, primarily through
organic development.
We are transforming our core business, building out new products
and expanding into higher growth adjacencies and geographies.
We are supplementing this organic development with selective
acquisitions of targeted data sets and analytics, and assets in high-
growth markets that support our organic growth strategies,
and are natural additions to our existing businesses.
By focusing on evolving the fundamentals of our business we
believe that, over time, we are improving our business profile
and the quality of our earnings. This has led to more predictable
revenues through a better asset mix and geographic balance; a
higher growth profile as we expand in higher growth segments,
and gradually reduce the drag from print format declines; and
improved returns by focusing on organic development with
strong cash generation.
Develop increasingly sophisticated information-based analytics and decision tools
that deliver enhanced value to professional and business customers across market segments
Primary focus on organic growth, supported by targeted acquisitions
Risk
§ Sustain strong long-
term growth profile
Scientific, Technical & Medical
§ Continue on improved
growth trajectory
Legal
§ Continue on improved
growth trajectory
Exhibitions
§ Capture growth
opportunity from
reopening and digital
§ Better customer outcomes § Higher growth profile
§ Improving returns
§ Positive impact on society
RELX business model
RELX is a global provider of information-based analytics and
decision tools for professional and business customers. We
leverage deep customer understanding, combining leading
content and data sets with powerful global technology
platforms, to build sophisticated analytics and decision
tools that deliver enhanced value to our customers.
These products are generally sold through dedicated sales
forces direct to customers and are priced on a subscription
or transactional basis, often under multi-year contracts
and are predominantly delivered in electronic format.
Our products often account for less than 1% of our customers‘
total cost base but can have a significant and positive impact on
the economics of the remaining 99%. Our objective is to continue
to enhance the value that we deliver to our customers and over
time to grow our own total cost base below our rate of revenue
growth on an underlying basis.
Revenue by format
Revenue by geographical market
Revenue by type
£7,244m
7%
7%
Electronic
Face-to-face
Print
86%
£7,244m
20%
£7,244m
42%
North America
Europe
Rest of world
20%
60%
Subscriptions
Transactional*
58%
* Includes long-term contracts with volumetric elements
Market segmentsGovernanceFinancial statements and other informationFinancial reviewCorporate ResponsibilityOverview 6
Key performance indicators
RELX’s key performance indicators (KPIs) track progress against long-term priorities. At the group level, given the diverse nature of
our end markets, we look at the continued migration of the business towards electronic delivery, the increasing introduction of electronic
decision tools, group level financial metrics, and corporate responsibility and sustainability metrics. The executive directors’ remuneration
policy includes measures linked to the financial KPIs and may also include non-financial metrics (see pages 100 to 121 for details).
In addition, we track KPIs within each market segment, at the product level, relevant to the performance of the specific business areas.
Significant group financial KPIs are set out below.
For non-financial KPIs a summary of the corporate responsibility and sustainability performance metrics and targets are set out
on pages 39 to 58 in the Corporate Responsibility overview.
Financial KPIs
Revenue
Adjusted operating profit
Adjusted earnings per share
+4% +4% +4%
-9%
+7%
8
n
b
£
0
8
n
b
£
0
100
+7%
+7%
+7%
+17%
-15%
+6% +6% +5%
-18%
+13%
e
c
n
e
P
0
2017
2018
2019
2020
2021
2017
2018
2019
2020
2021
Percentages represent underlying growth
Percentages represent underlying growth
2017
2019
Percentages represent constant currency growth
2021
2020
2018
Return on invested capital
Adjusted cash flow conversion
Dividend per share
15%
12.9%
13.2% 13.6%
11.9%
10.8%
120%
96%
96%
96%
97%
101%
0%
0%
+10%
+7% +9%
+3%
+6%
100
e
c
n
e
P
0
2017
2018
2019
2020
2021
2017
2018
2019
2020
2021
2017
2018
2019
2020
2021
Percentages represent growth
Revenue by format
64% 64%
60% 58% 56%
37%
52% 51%
33% 27% 25% 22% 21% 19% 18% 15%
15% 15% 15% 16%
15%
14% 14%
17%
15%
Electronic
Face-to-face
Print
11%
10%
9%
8%
5%
7%
7%
15%
16%
16%
13%
15%
12% 12% 12%
13% 12%
28% 30% 32% 35% 37%
14% 14%
22%
22%
59% 61% 63% 64%
48% 50%
66% 66% 70%
72%
74% 74%
75%
87%
86%
2000
2001
2002
2003
2004
2005
2006
2007
2008
2009
2010
2011
2012
2013
2014
2015
2016
2017
2018
2019
2020
2021
RELX Annual report and financial statements 2021 | Overview RELX Annual report and financial statements 2021 | RELX business overview
7
Market segments
RELX is a global provider of information-based analytics and decision tools for professional and business customers. RELX serves
customers in more than 180 countries and has offices in about 40 countries. It employs more than 33,000 people over 40% of whom
are in North America.
Risk provides customers with information-based analytics and decision tools that combine public
and industry-specific content with advanced technology and algorithms to assist them in evaluating
and predicting risk and enhancing operational efficiency
Segment position
Key verticals #1
Scientific, Technical & Medical provides information and analytics that help institutions
and professionals progress science, advance healthcare and improve performance
Global #1
Legal provides legal, regulatory and business information and analytics that help customers
increase their productivity, improve decision-making and achieve better outcomes
US #2
Outside US #1 or 2
Exhibitions combines industry expertise with data and digital tools to help customers connect
digitally and face-to-face, learn about markets, source products and complete transactions
Global #2
Financial summary by market segment
Risk
Scientific, Technical & Medical
Legal
Exhibitions
Unallocated items
Revenue
Adjusted operating profit
2021
£m
2,474
2,649
1,587
534
7,244
Change
underlying
+9%
+3%
+3%
+44%
+7%
2021
£m
915
1,001
326
10
(42)
2,210
Change
underlying
+10%
+3%
+5%
nm*
+13%
*The change in underlying adjusted operating profit growth is not meaningful (nm) for Exhibitions.
RELX uses adjusted and underlying figures as additional performance measures. Adjusted figures primarily exclude the amortisation of acquired intangible assets and other
items related to acquisitions and disposals, and the associated deferred tax movements. In 2020, we also excluded exceptional costs in the Exhibitions business. Reconciliations
between the reported and adjusted figures are set out on pages 193 to 197. Underlying growth rates are calculated at constant currencies, excluding the results of acquisitions
until 12 months after purchase, and excluding the results of disposals and assets held for sale. Underlying revenue growth rates also exclude exhibition cycling. Constant
currency growth rates are based on 2020 full-year average and hedge exchange rates.
Revenue
£7,244m
Risk
Scientific,
Technical
& Medical
Legal
Exhibitions
Adjusted operating profit
£2,210m
7%
<1%
15%
22%
34%
37%
Risk
Scientific,
Technical
& Medical
Legal
Exhibitions
44%
41%
Market segmentsGovernanceFinancial statements and other informationFinancial reviewCorporate ResponsibilityOverview 8
Harnessing technology
across RELX
Around 10,000 technologists, over half of whom are software
engineers, work at RELX. Annually, the company spends $1.6bn
on technology. The combination of our rich data assets, technology
infrastructure and knowledge of how to use next generation
technologies, such as machine learning and natural language
processing, allows us to create effective solutions for our customers.
65%
In Ohio, fraud in initial Pandemic Unemployment Assistance
applications was reduced by more than 65% in the first
week of implementation
240,000
The Kansas Department of Labor’s website was able
to block over 240,000 fraudulent logins and bot attacks
in the first day of implementation
LexisNexis Risk Solutions was among the suite
of technologies adopted by the Ohio Department of
Job and Family Services to combat unemployment
insurance fraud during the pandemic. These tools,
including enhanced identity verification, helped
better deflect fraud and resulted in a dramatic
decrease in initial claims being filed.
Ohio Department of Job and Family Services statement
About LexisNexis ThreatMetrix:
With deep insight into anonymised digital identities, LexisNexis
ThreatMetrix processes over 75bn annual authentication and
trust decisions annually, to differentiate legitimate customers
from fraudsters in real time.
ThreatMetrix: combatting
unemployment fraud in America
The Kansas Department of Labor and Ohio Department of Job
and Family Services were tasked with managing their respective
state’s unemployment programmes as part of the federal
Pandemic Unemployment Assistance program.
In 2020, Kansas had the highest rate of identity theft in the country
and suffered more unemployment fraud than California and
New York combined.
Meanwhile, in December of 2020, Ohio state officials identified
more than 56,000 fraudulent claims worth $330m. Of the roughly
1.4m applicants for Pandemic Unemployment Assistance there,
more than half were flagged as potentially fraudulent. Even
Governor Mike DeWine, the state’s First Lady Fran DeWine,
and Lieutenant Governor Jon Husted became victims with
fraudulent claims filed in their names.
Both organisations needed solutions providing much needed
benefits to Kansas and Ohio citizens while keeping fraudsters
out. Each harnessed intelligence from LexisNexis Digital
Identity Network to identify fraudulent activity in
unemployment applications.
Lexis Nexis Digital Identity Network on an annual average
analyses more than 200 million transactions daily from consumer
interactions including logins, payments, and new account
applications across thousands of global businesses. Using
this information, ThreatMetrix creates a unique digital identity
for each user by analysing the myriad connections between
devices, locations, and anonymised personal information.
Behaviour that deviates from this trusted digital identity can
be accurately identified in real time, alerting customers to
new users who may be using stolen identity data or
obfuscating their location.
RELX Annual report and financial statements 2021 | Overview RELX Annual report and financial statements 2021
9
Applying machine learning and AI
on real-world patient data to reduce
adverse health events in hospitals
5%
Healthcare, by definition, is supposed to make you better.
But sometimes, an infection is contracted at the hospital or a
complication occurs after surgery. Such health-related adverse
events occur in 8% to 12% of all hospitalisations. According to
the World Health Organization, there are 750,000 health-related
adverse events in the European Union each year which amounts
to more than 3.2m days of hospitalisation that could have been
prevented. A 2017 report from the Organisation for Economic
Co-operation and Development shows that more than 10% of
hospital expenditure is related to the treatment of health-
related adverse events that occur during hospitalisations.
In 2019, Professor Jean-Luc Bosson, Head of the Public Health
Department of the University Hospital of Grenoble (CHUGA),
France teamed up with Elsevier to apply machine learning to
their historical patient data with the aim of creating models that
identify patients at higher risk for healthcare-related adverse
events. To do this, a single multi-source dataset, or a ‘data
warehouse’, that combined all the hospital’s internal data sources
needed to be built. This complex task involves sourcing data from
different places such as laboratories and radiology departments,
and incorporating various types of sources such as diagnoses,
notes and orders from nurses and physicians. The task also
requires resolving data mismatches and coding inconsistencies.
Over the course of the pandemic, the project teams from Centre
Hospitalier Universitaire Grenoble-Alpes and Elsevier worked
together remotely to set up the pre-conditions for big data analysis
using modern machine learning methods. Bosson’s ambition
is now almost in place: simultaneous modelling of hundreds of
variables to uncover relationships, look for patterns and define
populations at risk. This will allow the hospital to flag patients
that fit the risk profile and provide more directed care.
“This type of project benefits the patients first, but also the
organisation. Before, I viewed Elsevier essentially as a publisher
of scientific journals. With this project, I discovered and understood
Elsevier’s openness to a world we share – medical informatics
and health analytics” said Bosson.
Models identify the top 5% of patients with a 4.7x increased
risk for life threatening event like thromboembolism, or a
40% risk of a prolonged hospital stay.
Without Elsevier’s data science teams, we would
never have had the expertise and availability of
sufficient staff to complete this project. Or we
would have done it in five to six years and the
project would have been obsolete before it
was finished. In this field, you have to have
quick results, because things move very fast.
Professor Jean-Luc Bosson
Centre Hospitalier Universitaire Grenoble-Alpes, France
Elsevier is increasingly positioned at point-of-
care decision science where we combine data
and content to help streamline the care process
in hospital. This project demonstrates our ability
to understand a data stream, gain insights from
it and make something better, all the while
respecting data privacy and GDPR compliance.
Dr Sigurd Prieur
Vice President Analytics, Elsevier’s Clinical Solutions
Centre Hospitalier Universitaire
Grenoble-Alpes (CHUGA)
Model-based prediction
of individuals’ risk profile
Machine learning models enable clinicians
to predict a patient’s individual risk for health
care related adverse events at admission,
to efficiently target resources and improve
patient’s outcome
Prolonged hospital stay
Hospital acquired
ESBL infection
30-day
re-hospitalization
In-hospital death
Thromboembolism
patient A
patient B
patient C
patient D
patient E
patient E
Predictive model based on
• Lab values
• Procedures
• Diagnoses
• Social determinants of health
• Entry and exit mode
Source: Result from DEMETER, a
retrospective and observatory study
between CHUGA and Elsevier
Market segmentsGovernanceFinancial statements and other informationFinancial reviewCorporate ResponsibilityOverview 10
Helping our
customers succeed
Our people have remained resilient during these challenging times.
They continued to maintain high levels of service for our customers,
while innovating for the business and supporting each other – with
employee engagement scores at an historic high.
Find out more about our colleagues at:
relx.com/careers/meet-our-people
RELX Annual report and financial statements 2021 | Overview RELX Annual report and financial statements 2021
11
Read our stories on how we enable our
customers to make better decisions,
get better results and be more productive:
www.relx.com/our-business/perspectives
Market segmentsGovernanceFinancial statements and other informationFinancial reviewCorporate ResponsibilityOverview 12
Market
segments
In this section
14 Risk
20 Scientific, Technical & Medical
26 Legal
32 Exhibitions
RELX Annual report and financial statements 2021 13
RELX Annual report and financial statements 2021Market segmentsGovernanceFinancial statements and other informationFinancial reviewCorporate ResponsibilityOverviewMarket segments 14
Risk
We combine data and analytics with deep
industry expertise to help customers make
better decisions and manage risk. We help
detect and prevent online fraud and money
laundering and deliver insight to insurance
companies. We provide digital tools that help
airlines and farmers improve their operations.
§ We do business with 93% of the Fortune 100;
79% of the Fortune 500; seven of the world’s top
ten banks and 98 of the top 100 personal lines
insurance companies
§ More than 216,000 websites and mobile
applications implement the LexisNexis
Digital Identity Network around the world
§ 85% of new US auto insurance policies issued to
consumers in 2021 benefited from our products
§ Cirium provides services to the majority of the
top 50 airline groups globally, representing
circa 85% of the world’s 2021 airline passenger
traffic and to four out of five of the world’s top
search engines. It tracks 98% of flights globally
in real time
§ ICIS serves 95 of the top 100 chemical
companies and its Recycling Supply Tracker
contains data on over 2,500 chemical plants
globally, enabling users to source recycled
plastics more effectively
§ Over 280m farm acres (>110m hectares) are
managed by Proagrica’s geospatial technology
§ More than 7,500 federal, state and local
government agencies use our solutions to
prevent fraud and allow citizens faster access
to digital-based services, maintain program
integrity, reduce risk and fight crime
Business overview
Risk provides customers with information-based analytics and
decision tools that combine public and industry-specific content
with advanced technology and algorithms to assist them in
evaluating and predicting risk and enhancing operational efficiency.
LexisNexis Risk Solutions, headquartered in Alpharetta, Georgia,
has principal operations in California, Florida, Illinois, New York
and Ohio in North America as well as London and Paris in Europe,
Sāo Paulo in Latin America and Beijing and Singapore in Asia
Pacific. It has about 10,000 employees and serves customers
in more than 180 countries.
Revenues for the year ended 31 December 2021 were £2,474m,
compared with £2,417m in 2020 and £2,316m in 2019. In 2021,
79% of revenue came from North America, 14% from Europe
and the remaining 7% from the rest of the world. Subscription
sales generated 40% of revenues and transactional sales 60%.
LexisNexis Risk Solutions comprises the following market-facing
industry/sector groups: Business Services, Insurance Solutions,
Specialised Industry Data Services (including energy and
chemicals, aviation, agriculture and human resources) and
Government Solutions.
Business Services, representing around 45% of revenue,
enables global financial transparency and inclusion by providing
holistic and actionable insights for all risk and compliance segments.
We help customers address some of the greatest challenges facing
businesses today, including identifying fraud, cybercrime, bribery
and corruption, human trafficking, economic sanctions, global
terrorism and abusive practices. The combination of our proprietary
data sets and advanced analytics, powered by Machine Learning
(ML) and other Artificial Intelligence (AI) technologies, deliver
actionable insights that improve decisions and operations
efficiency for customers globally.
Maximising penetration in our current markets across our
customers’ workflows and through international expansion
is the primary driver of the Business Services growth strategy.
Innovation continued in 2021 for our US fraud and identity solutions
with the release of a synthetic identity fraud score and within our
credit risk portfolio with the launch of two new credit scores that
uncover opportunities overlooked by traditional credit approaches.
In 2021, Business Services also continued expanding its financial
crime compliance solution portfolio globally with the acquisition
of TruNarrative, a cloud-based orchestration platform that
detects, prevents and reports financial crime. Its high functioning,
easy-to-use workflow was designed for regulated organisations
such as banks, payment companies, non-bank financial institutions
and designated non-financial businesses.
Insurance Solutions, representing nearly 40% of revenue, provides
comprehensive data, analytics and decision tools for personal,
commercial and life insurance carriers to improve critical aspects
of their business. Information solutions, including the most
comprehensive US personal loss history database, C.L.U.E., help
insurers assess risks and provide important inputs to pricing and
underwriting insurance policies. Additional key products include
data prefill solutions, which provide information on policy holders
directly into the insurance work stream for 92% of the insurance
auto market and LexisNexis Current Carrier, which identifies
insurance coverage details and any lapses in coverage. LexisNexis
Vehicle Build gives insurers access to new vehicle-centric data like
Advanced Driver Assistance Systems (ADAS), standardised across
automakers for the underwriting process.
RELX Annual report and financial statements 2021 | Market segments 15
The focus is on delivering innovative decision tools through
a single point of access within an insurer’s infrastructure.
Insurance Solutions continues to drive more consistency
and efficiency in claims, now providing data and decisions for
challenging total losses, at first notice of loss with Claims
Datafill, and throughout the claim life cycle. LexisNexis Risk
Classifier, which uses public and motor vehicle records and
predictive modelling to better understand risk and improve
underwriting efficiency, now offers a next-generation
mortality model combining behavioural and medical data.
Insurance Solutions continues to make progress outside the US.
In the UK, contributory solutions including No Claims Discount
module, which automates verification of claims history for over
97% of the market and Policy Insights, a predictor of motor
claims loss, are delivered through the LexisNexis Informed
Quotes platform to provide real-time data in the quoting process.
In China, Genilex is delivering key vehicle data to auto insurers and
is looking to add more analytics solutions. In Brazil, Insurance
Solutions is delivering telematics solutions, data and analytics
to help motor insurers in underwriting.
Specialised Industry Data Services, representing just over 10%
of revenue, provides indispensable business information, data,
software and analytics solutions to professionals in many of the
world’s biggest industries. Our brands include: ICIS, an independent
source of data and intelligence for the global chemical and energy
markets; Cirium, the aviation analytics company; Proagrica, which
helps the agriculture and animal health segments to become more
economically and environmentally sustainable by providing unique
workflow and analytics solutions; XpertHR, a compliance and
benchmarking business driving global HR topics from pay equality
to HR policies; EG, which delivers data analytics, decision tools and
high-value analysis and news for the UK’s commercial real estate
segment; and Nextens, a provider of workflow solutions, content
and analytics for tax professionals. In February 2021, Proagrica
completed the acquisition of CDMS, a provider of compliance
data and solutions to support crop production decisions.
Government Solutions, representing just over 5% of revenue, has
helped US agencies, especially during the continuing pandemic,
shift from identity verification to authentication. Front-end
identity authentication is central to how the government
dispenses hundreds of billions of dollars in entitlements,
stimulus, benefits and contracts to people and businesses.
LexisNexis Risk Solutions harnesses the power
of data and advanced analytics to provide insights
that help businesses and governmental entities
reduce risk and improve decisions to benefit
people around the globe
Cirium delivers aviation data and analytics
globally to airlines, airports, governments,
tech giants, aerospace companies and more.
The Cirium Core, the nerve centre of the
business ingests over 300 terabytes of
information daily from over 2,000 sources
from across the industry
A global agricultural network, enabling
agriculture and animal health industry
participants to seamlessly collaborate; acting as
a trusted, independent partner that facilitates
value exchange between our customers
LexisNexis Claims Compass
Risk Intelligence Network
Global source of Independent Commodity
Intelligence Services, connecting data, markets
and customers to create a comprehensive,
trusted view of global commodity markets
Data analytics platform delivering LexisNexis
Claims Datafill, VINsights, Claims Clarity
and LexisNexis Police Records solutions to
improve the claims process from first notice
of loss, triage, investigation and resolution,
through recovery
The Risk Intelligence Network provides
government agencies with the first step of
identity assessment across a number of
services including benefits applications,
claims filing and tax return filing. With a
powerful combination of contributory systems
and analytics, emerging threats can be
identified before they have a significant impact
Credit Risk Portfolio
Risk Defense Platform
LexisNexis Telematics OnDemand
LexisNexis® RiskView™ Optics and RiskView™
Spectrum, two FCRA-compliant credit scores
that provide a broader view into consumer credit
worthiness, delivers a more predictive
assessment for a higher percentage of new
applicants to uncover opportunities overlooked
by traditional credit tools
A fraud prevention and identity management
platform that seamlessly delivers the broadest
of solutions, including the latest in machine
learning that adapts to ever changing fraud
schemes, simplifying efforts to detect and
prevent risks associated with the merging
of digital and physical identities
A solution that seamlessly integrates
telematics-based driving behaviour data from
connected vehicles directly into insurer rating
and underwriting workflows without the need
for trial and monitoring periods
Fraud and Identity Management Portfolio
Accurint® Virtual Crime Center
Financial Crime Compliance Portfolio
Digital, physical, device and behavioural risk
signals to help organisations better assess
consumers, prevent fraudulent transactions,
improve operational efficiencies and protect
accounts while minimising friction for trusted
users. LexisNexis® Fraud Intelligence Synthetic
Score, our latest fraud analytics model,
launched in 2021, helps determine whether
new applications are using manipulated
or manufactured identity information to
commit fraud
The only data sharing platform in the policing
market used for analytics, crime analysis
and investigations linking public records to
national law enforcement data for a complete
picture across jurisdictions
Our integrated financial crime compliance
offerings deliver comprehensive solutions
for addressing financial crime risk. In August
2021, LexisNexis Risk Solutions acquired
TruNarrative, which provides a cloud-based
orchestration platform that empowers
organisations to detect, prevent and report
financial crime
RELX Annual report and financial statements 2021 | RiskMarket segmentsGovernanceFinancial statements and other informationFinancial reviewCorporate ResponsibilityOverview 16
Our solution synthesises thousands of data sources and billions
of relationships into modernised interfaces, providing agencies
immediate access to identity and authentication analytics. It
creates near-frictionless identity verification and authentication
for everything from unemployment insurance claims and remote
government workforce access to matching of patient data,
providing a snapshot in time for public health researchers.
Market opportunities
We operate in markets with strong long-term growth in demand
for high-quality advanced analytics based on industry information
and insight, including: insurance underwriting transactions;
insurance acquisition, retention and claims handling; tax and
public benefits fraud; financial crime compliance; business
risk; fraud and identity solutions; due diligence requirements
surrounding customer enrolment; security and privacy
considerations; and data and advanced analytics for the banking,
energy and chemicals, aviation and human resources sectors.
Expansion of mobile and digital use cases continue to drive
opportunity for Business Services solutions that incorporate
global data and drive efficiency in risk decision-making. As
criminals continuously adjust attack vectors targeting financial
transactions, organisations are utilising our solutions to evolve
their fraud detection and prevention, financial crime and
compliance, and consumer and business credit programs.
Mounting costs from fraud schemes, anti-money laundering
programs, sanctions compliance, anti-bribery and corruption
enforcement, consumer and business credit expansion,
and heightened regulatory scrutiny also provide growth
opportunities. We are seeing new use cases for our solutions
continue to emerge in the cryptocurrency, gaming/gambling
and buy now, pay later segments.
In Insurance, growth is supported by customer experience
advances in the auto, home, commercial and life insurance
markets and the increasing adoption by insurance carriers
of more sophisticated data and analytics in the prospecting,
underwriting and claims evaluation processes, to assess risk,
increase competitiveness and improve operating cost efficiency.
Transactional activity is driven by growth in insurance quoting
and policy switching, as consumers seek better policy terms.
This activity is stimulated by competition among insurance
companies, increased consumer interest in insurance and
internet quoting and policy binding. We continue to expand our
services to make it easier for consumers to transact with insurers
throughout the policy life cycle. We are developing solutions
that bridge insurers and automakers, utilising connectivity and
data from connected cars to empower consumers with a deeper
understanding of their driving behaviour information and deliver
vehicle data into insurer workflows. Our relationships with
automakers, representing 72% of new car sales in the US market,
reflect the need to improve and digitise the consumer experience
through ownership management and connected services solutions,
while creating efficiencies within automakers’ operations.
In Specialised Industry Data Services, growth in the global energy
and chemicals markets is led by changing trade patterns, a drive to
embrace sustainability and demand for more sophisticated supply
chain solutions. Aviation information markets are being driven by
changes in air traffic, the number of aircraft transactions and the
digital transformation of the airline industry. Growth in agriculture
markets is being driven by adoption of technology and data
solutions plus increasing supply chain connectivity.
With over 7,500 federal, state and local agencies using our services,
Government Solutions continues its mission of preventing fraud,
fighting crime, reducing risk, and providing citizens with immediate
access to digital-based services. The $2,000bn CARES Act
increased the demand for online access to government services
and highlighted the need for robust fraud prevention tools as
criminals continued to compromise these systems, leveraging
both online and mobile access technologies. This problem has
become more pronounced and sophisticated as government
spending has risen. Data integrity and fraud prevention for
businesses and people plays an increasingly important role in
accessing government services and receiving entitlements as
agencies continue to adopt private sector technologies. The level
and timing of demand in this market is influenced by government
funding and revenue considerations.
Strategic priorities
Our strategic goal is to help customers achieve better outcomes
by offering greater insight into the risks and opportunities
associated with individuals, businesses, devices, transactions
and regulations. We assist customers by providing high quality
data and decision tools to help them understand their markets,
manage risks efficiently and control cost effectively. We enable
this by focusing on: delivering innovative products; expanding the
range of risk management solutions across adjacent markets;
addressing international opportunities to meet local needs;
continuing to strengthen our content, technology and analytical
capabilities; and investing in sales and marketing.
Revenue by format
Revenue by geographical market
Revenue by type
£2,474m
Face-to-face
1%
Rest of world
7%
£2,474m
Europe
14%
£2,474m
Transactional*
60%
Subscription
40%
Electronic
99%
North
America
79%
*c90% under long term contracts with volumetric
elements
RELX Annual report and financial statements 2021 | Market segments 17
LexisNexis Risk Solutions has been developing Artificial
Intelligence (AI) and Machine Learning (ML) techniques for a
number of years to generate the actionable insights that help our
customers to make accurate, better informed and more timely
decisions. The successful deployment of AI and ML techniques
starts with a deep understanding of customer needs and
leverages the breadth and depth of our data sets, coupled with
the expertise and domain knowledge to discern which AI/ML
algorithm to use, in what context, to solve our customers’
business problems most effectively.
Business model, distribution channels and competition
We sell our products direct-to-client, with pricing predominantly
on a transactional basis in the Business Services and Insurance
segments and largely on a subscription basis in Specialised
Industry Data Services and Government. We also utilise a
robust partner distribution channel.
Principal competitors in the Business Services and Government
Solutions segments include the major credit bureaus, which in
many cases address various capabilities within each solution
offering. In the insurance sector, Verisk sells data and analytics
solutions to insurance carriers but largely addresses different
activities to ours.
Specialised Industry Data Services competes with a number
of information providers on a service and title-by-title basis
including S&P Global Platts, Thomson Reuters and IHS Markit
as well as a number of niche and privately owned competitors.
2021 financial performance
Revenue
Adjusted operating profit
2021
£m
2,474
915
2020
£m
2,417
894
Underlying
growth
+9%
+10%
Portfolio
changes
0%
0%
Currency
effects
-7%
-8%
Total
growth
+2%
+2%
In Specialised Industry Data Services, which represents
just over 10% of divisional revenue, end market dynamics
continued to vary by segment, but recently returned to
strong growth overall.
In Government, strong growth was driven by the continued
development and roll-out of analytics and decision tools.
2022 outlook
We expect strong underlying revenue growth, in line with
historical trends, with underlying adjusted operating profit
growth broadly matching underlying revenue growth.
Strong fundamentals driving underlying revenue growth
Underlying revenue growth was +9%. Underlying adjusted
operating profit growth of +10% was slightly ahead of underlying
revenue growth, offset by currency effects to leave adjusted
operating margin unchanged.
In Business Services, which represents around 45% of divisional
revenue, double digit growth was driven by demand for fraud
prevention analytics and decision tools, with digital identity
solutions including ThreatMetrix and Emailage performing
particularly well. Financial Crime & Compliance growth rates
continued to improve, and Business Risk & Alternative Credit
grew strongly.
In Insurance, which represents just under 40% of divisional
revenue, we continued to drive growth through the roll-out of
enhanced analytics, the extension of datasets, and by further
expansion in adjacent verticals. Driving patterns and claims
activity continued to recover towards historical trends. US auto
shopping activity fluctuated through the period as a number
of factors that influence the US auto and insurance markets
varied more than usual during the year. New business sales
grew strongly.
Revenue
£m
Adjusted operating profit
£m
Underlying growth +9%
2,417
2,474
Underlying growth +10%
894
915
2020
2021
2020
2021
RELX Annual report and financial statements 2021 | RiskMarket segmentsGovernanceFinancial statements and other informationFinancial reviewCorporate ResponsibilityOverview 18
ICIS:
mitigating risk and improving
price transparency through
commodity intelligence
About ICIS:
ICIS is a global source of commodity
intelligence for the chemical and
energy markets, helping to make
some of the world’s most important
markets more transparent and
predictable by providing data
services, thought leadership
and decision tools. Thousands of
decisions are taken across supply
chains every day using ICIS
intelligence which empowers
businesses in the energy, chemical
and fertiliser industries to make
strategic decisions, mitigate risk,
improve productivity and capitalise
on new opportunities.
RELX Annual report and financial statements 2021 | Market segments 19
€1.1m
is the estimated potential risk mitigated every year
as a result of using ICIS’ commodity intelligence.
The biggest impact ICIS has on our
daily work is helping us stay ahead
of market developments as they
happen so that we can take the
required steps to secure supply at
the best price possible. The ICIS
forecasts definitely help us to stay
one step ahead. Global commodity
outlook is becoming increasingly
important. We particularly
appreciate that ICIS continues to
care about regional specialties
and characteristics. ICIS’ global
and regional view of the markets
enables us to create a solid
foundation for our local activities.
Martin Anderson
Head of Purchasing Raw Materials/Surfaces/LTS,
DRÄXLMAIER GmbH
DRÄXLMAIER started its business in
the 1950s and supplies world-class,
premium automobile manufacturers
with complex wiring harness systems,
central electrical and electric
components, exclusive interiors,
as well as battery systems for
electromobility. DRÄXLMAIER has
60 years of history, 65 sites and
75,000 employees worldwide and
sales of over €4bn.
As a global manufacturing company, DRÄXLMAIER closely
monitors raw commodity prices as this has a noticeable impact
on the success of the business. The company needs to stay
informed and have access to objective and trusted intelligence
to mitigate risk and make effective decisions across the whole
supply chain. The Covid-19 pandemic further increased the
difficulty of monitoring supply and demand which can lead to
delays in the planning process.
DRÄXLMAIER, which has been a client for three years, subscribes
to ICIS’ data and analytics services, including its 18 months price
forecasts delivered through ICIS Digital, its online client platform.
The licence includes data and intelligence on 19 different raw
materials for multiple functions in Europe, Asia and Mexico.
This helps the automotive component manufacturer keep
track of global supply and demand in real-time and also access
specialist market analysts embedded in commodity markets
across the world.
Equipped with pricing data at both a global and local level,
DRÄXLMAIER is able to establish common ground with its
partners and can optimise pricing strategies to make effective
business decisions based on independent and trusted benchmark
price assessments. It means no time is wasted discussing facts,
and conversations can focus on finding the best outcomes in
what is one of the most volatile markets in the world.
DRÄXLMAIER uses ICIS’ data and analytics services to shape
product strategies, negotiate and make confident business
decisions along the automotive supply chain. In particular, it is
able to anticipate market volatility and understand price drivers
and fluctuations in real-time, where a small dollar deviation
from the market price could create significant monetary loss.
DRÄXLMAIER production facility. Image courtesy of DRÄXLMAIER Group.
RELX Annual report and financial statements 2021 | RiskMarket segmentsGovernanceFinancial statements and other informationFinancial reviewCorporate ResponsibilityOverview 20
Scientific, Technical & Medical
We help researchers share knowledge,
collaborate, find funding opportunities and
make discoveries. We help universities and
governments evaluate and improve the impact
of their research strategies. We help doctors
and nurses improve the lives of patients,
providing insights and tools to find the
right clinical answers.
§ We help ensure quality research accelerates
progress for society by organising the review,
editing and dissemination of around 18% of
the world’s scientific articles
§ Elsevier’s over 2,700 journals published
more than 600,000 articles in 2021, from
2.5m submitted. 215 of 216 science and
economics Nobel Prize winners since
2000 have published in an Elsevier journal
§ ScienceDirect, the world’s largest platform
dedicated to peer-reviewed primary scientific
and medical research, hosts over 19m pieces
of content from over 4,400 journals and over
43,000 e-books, and has over 18m monthly
unique visitors
§ Scopus is an expertly curated abstract and
citation database with content from over
27,000 journals from more than 7,000
publishers to help researchers track and
discover global knowledge in all fields
§ SciVal is a web-based analytics solution that
provides insights into the research performance
of over 20,000 academic, industry and
government research institutions
§ Reaxys, a comprehensive chemistry research
information system, supports chemists and
data scientists in the chemicals, pharmaceutical
and academic sectors.
§ ClinicalKey, the flagship clinical reference
platform, is used by doctors, nurses, medical
students and educators at over 5,000 institutions
in over 90 countries and territories.
§ Elsevier’s free Novel Coronavirus Information
Centre saw over 175m downloads in 2021
Business overview
Scientific, Technical & Medical helps researchers and healthcare
professionals advance science and improve health outcomes by
combining quality information and data sets with analytical tools
to facilitate insights and critical decision-making.
Elsevier is headquartered in Amsterdam, with further principal
sites in Boston, New York, Philadelphia, St. Louis and Berkeley in
North America; London, Oxford, Frankfurt, Munich, Madrid and
Paris in Europe; Beijing, Chennai, Delhi, Singapore and Tokyo in
Asia Pacific, and Rio de Janeiro in South America. It has 8,700
employees and serves customers in over 180 countries.
Revenues for the year ended 31 December 2021 were £2,649m,
compared with £2,692m in 2020 and £2,637m in 2019. In 2021,
46% of revenue came from North America, 23% from Europe
and the remaining 31% from the rest of the world. Subscription
sales generated 74% of revenue and transactional sales 26%.
Elsevier’s customers are scientists, research leaders, librarians,
medical researchers, doctors, nurses, allied health professionals
and students, as well as hospitals, academic and research institutions,
health insurers, managed healthcare organisations, research-
intensive corporations and governments.
Elsevier services are focused on the following areas: Primary
Research (Academic & Government and Corporate markets),
Databases, Tools and e-Reference in electronic format, and
Print products.
Primary Research accounts for around half of revenues. Elsevier
serves the global scientific research community, publishing over
600,000 articles in 2021, 89% more than a decade ago. Article
submission volumes were 2.5m in 2021, in line with the elevated
levels of 2020 and over 1.6bn articles were consumed by researchers.
Elsevier published over 119,000 open access articles in 2021, a year
on year growth rate of over 46%. In 2021, Elsevier launched 105 new
journals of which 95% were Gold open access, growing the Elsevier
portfolio to over 600 Gold open access journals.
Elsevier’s over 2,700 journals enhance the record of scientific
knowledge by applying high standards of quality in everything they
publish and ensuring trusted research can be accessed, shared
and built upon by others. In collaboration with 29,000 editors and
1.3m expert reviewers around the world, many Elsevier journals
are the foremost publications in their field, including flagship
families of journals such as Cell Press and The Lancet. Articles
published in Elsevier’s journals account for around 18% of global
research output and 28% of citations, demonstrating Elsevier’s
commitment to delivering research quality significantly ahead
of the industry average.
Research content is distributed and accessed via ScienceDirect,
the world’s largest platform dedicated to peer-reviewed primary
scientific and medical research.
Databases, Tools and e-Reference account for just over 35% of
revenues. Elsevier offers a broad portfolio of tools for academic
and corporate researchers, healthcare organisations and medical
and nursing schools. Leading solutions include Scopus, SciVal,
Pure, ClinicalKey, ClinicalPath, Reaxys, SciBite, HESI, Sherpath,
Shadow Health and Complete Anatomy.
Success in today’s research ecosystem requires access to quality
information and insights to support decision making so that
research can flourish, advance society and drive economic growth.
Elsevier’s research intelligence portfolio of web-based products
RELX Annual report and financial statements 2021 | Market segments 21
brings together quality structured data, advanced data science, an
array of indicators and clear visualisations to enable researchers,
university management, policy-makers, funders and corporate
R&D executives to generate insights, set and implement research
strategies and take decisions with confidence. From the curated
and connected data in solutions such as Scopus, and the advanced
artificial intelligence and semantic technology in SciVal, to the
interoperability possible through Application Programming
Interface technologies (APIs) enabling data exchange and
transparent data inspection, the research intelligence portfolio
integrates with and enhances the complex systems and services
that institutions rely on for research success.
Elsevier is also committed to working with the community to help
researchers solve the world’s most pressing challenges. Since the
establishment of the UN Sustainable Development Goals (SDGs)
in 2015, Elsevier’s data scientists have been working to map global
research to the UN SDGs, provide a measurable view of progress
through a research lens and offer evidence-based insights for
action. As well as SDG-focused reports, Elsevier has created, in
partnership with the research community, pre-set Scopus search
queries for each SDG, which are used in SciVal to help researchers
and institutions track and demonstrate progress towards the
SDG targets.
For healthcare professionals, Elsevier’s flagship clinical reference
platform, ClinicalKey, is a knowledge solution designed to help
doctors, nurses and students find the most clinically relevant
answers through a wide range of trusted content across specialties.
This includes Elsevier’s vast collection of leading medical reference
content, including over 1,300 clinical overviews that provide quick
clinical answers and summaries, over 5.3m images and over 80,000
medical videos in a single, fully integrated site. In 2021 an enhanced
version of ClinicalKey was launched with a faster, more effective
point of care guidance for physicians.
Elsevier’s clinical solutions also include Interactive Patient
Education and Care Planning. ClinicalPath provides clinical
pathways for cancer treatment, with personalised, evidence-
based oncology guidance at the point of care. In 2021, Elsevier
was awarded the Digital Health Award for its Covid-19
Healthcare Hub in the category of Web-based Digital Health.
In medical education, Elsevier serves students of medicine, nursing,
and allied health professions in multiple ways including e-books
and digital solutions. For example, Sherpath, an adaptive teaching
and learning solution for nursing and health education, provides
highly focused, personalised learning paths at over 500 institutions,
supporting more than 200,000 course enrolments. Remote options
for medical education continue to see strong adoption. Sherpath
saw very strong growth, and Complete Anatomy, our 3D anatomy
platform exceeded 2 million registered users, with 32% growth in
subscribers. ClinicalKey Student is used by over 290,000 students
in more than 280 medical schools and 260 nursing schools.
In 2021, Reaxys integrated its award-winning predictive
retrosynthesis tool and substantially increased its patent coverage.
In e-Reference, Elsevier is a global leader in providing authoritative
and current professional reference content to scientific, technical
and medical reference markets. Flagship titles include Gray’s
Anatomy, Nelson’s Pediatrics and Netter’s Atlas of Human Anatomy.
The world’s largest platform dedicated to
peer-reviewed primary scientific and
medical research
Clinical knowledge solution helping healthcare
professionals and students find the most
clinically relevant answers through a wide
breadth and depth of trusted content
across specialties
®
Science that inspires: A leading journal
in the field of biochemistry and molecular
biology
An expertly curated abstract and citation database
with content from over 7,000 publishers to help
track and enhance researcher and institutional
data and discover global research in all fields
HESI combines a comprehensive online
course for nursing personalised to the needs
of each student, with real-time support from
a nurse educator who’s only a click away to
provide guidance, helping to bridge the gap
between graduation and the licensure exam
®
Science for better lives: one of the world's
leading medical journals since 1823
®
TM
A web-based analytics solution with unparalleled
flexibility that provides access to the research
performance of over 20,000 academic, industry
and government research institutions and their
associated researchers, output and metrics
ClinicalPath provides evidence-based
oncology pathways that help improve
patient outcomes and reduce variability in
care in health systems, academic medical
centres and community practices
An innovative and comprehensive chemistry
research information system that supports
chemists and data scientists across the
chemicals, pharmaceutical and academic
segments by providing access to chemistry
and bioactivity data from journal literature
and patents
TM
A research information management system
that enables evidence-based decisions, simplifies
research administration and optimises impact,
reporting and compliance
®
SciBite, a semantic AI solution, helps customers
make faster, more effective R&D decisions through
advanced text and data intelligence analytics
The world’s most advanced 3D anatomy
platform, Complete Anatomy is revolutionising
how students, educators, health professionals
and patients understand and interact with
anatomy and this year introduced the first
full female anatomical model
An educational software for nursing students
and allied health education programs, using
a state-of-the-art conversation engine and
interactive 3D imagery to perform assessments,
practice documentation, and advance
critical thinking
RELX Annual report and financial statements 2021 | Scientific, Technical & Medical®Market segmentsGovernanceFinancial statements and other informationFinancial reviewCorporate ResponsibilityOverview
22
Print accounted for 12% of Elsevier revenues in 2021. While the
majority of services are delivered electronically, Elsevier serves
the ongoing demand for print format primary research and reference
content, as well as providing commercial marketing services in
pharma & life science promotion.
In the research sector across academic, government and corporate
segments, Elsevier brings together its rich content with analytics
and technology, utilising advanced machine learning and artificial
intelligence, to improve productivity and outcomes and to enable
scientific and research insights and benchmarking.
Market opportunities
Scientific, technical and medical information markets have
positive long-term growth characteristics. The importance of
research and development to society, economic performance
and competitiveness is well understood by governments, academic
institutions and corporations. This leads to long-term growth
in research and development spending and in the number of
researchers worldwide. Growth in health markets is driven
by ageing populations, rising prosperity in developing markets
and the increasing focus on improving medical outcomes and
efficiency. Given that a significant proportion of scientific research
and healthcare is funded directly or indirectly by governments,
spending is influenced by governmental budgetary considerations.
The commitment to research and health provision remains high,
even in more difficult budgetary environments.
Strategic priorities
Elsevier’s strategic priorities are to continue to improve customer
outcomes by expanding content quality, coverage and utility; to
build integrated solutions and decision tools; to combine content
with analytics and technology to expand the use cases it addresses;
to increase publication choices for researchers across subscription
and open access models; to continue to improve customer experience
while driving operational efficiency and effectiveness; and to
collaborate with the communities it serves to advance open science,
inclusion and diversity in research and health and to support UN SDGs.
In the primary research market, Elsevier aims to deliver journal
and article quality above the industry average at below average
cost, leveraging its scale and expertise. Elsevier works with
customers to understand their objectives and help them reach
their research goals in a way that is satisfactory from a content,
service and economic perspective. Elsevier looks to enhance
quality by building on its premium brands and grow article
volume through new journal launches, the expansion of open
access journals and growth from emerging markets; and to
continue to broaden the range and quality of insights across
research solutions with enhancements such as improved
open access, integration of additional datasets for finding
experts and institutional benchmarking.
In health, Elsevier is developing clinical decision support applications
utilising cognitive technologies and large image and text content
repositories. These applications embedded in technology platforms
will enhance the delivery of the right content, in the right care setting,
to the right care providers. This will help health professionals make
more accurate diagnoses, ensure appropriate care delivery and
ultimately, save more lives.
In reference markets, Elsevier’s priorities are to expand content
coverage, improve the user experience and ensure consistent
and seamless linking of content assets across products.
In every market, Elsevier is applying advanced Machine Learning
and Natural Language Processing to help researchers, engineers
and clinicians perform their work better. For example, in nursing
education, Authess, the performance-based competency
assessment platform, uses ML models and data analytics in nursing
education, supporting NCSBN’s Next Generation NCLEX exam
which asks complex questions to assess clinical judgment and
decision-making skills of future nurses. Shadow Health utilises
cutting-edge simulations to enable learners to practise and apply
their clinical reasoning skills through life-like interactions with
a diverse range of virtual patients. These products, in addition to
HESI, Elsevier's flagship suite of assessment solution tools, help
nursing schools to prepare students for professional exams and
allow them to practise critical skills for patient care in a safe and
standardised environment.
Business model, distribution channels and competition
In Primary Research, science and medical research is principally
disseminated on a paid subscription basis to academic institutions,
governments and corporations and, in the case of medical and
healthcare journals, to health institutions, individual practitioners
and medical society members.
While paid subscriptions continue to be the primary distribution
payment model, alternative payment models for the dissemination
of research have evolved, such as author-pays open access. Elsevier
offers a wide range of open access options to fit the diverse needs of
institutions, funders, academic societies and researchers around
the world. As one of the fastest-growing open access publishers in
the world, nearly all of Elsevier's over 2,700 journals enable open
access publishing, with over 600 dedicated open access journals.
In 2021, Elsevier published 119,000 open access articles.
Revenue by format
Revenue by geographical market
Revenue by type
£2,649m
Print 12%
£2,649m
Rest of
world
31%
£2,649m
Transactional
26%
North
America
46%
Electronic
88%
Europe
23%
Subscription
74%
RELX Annual report and financial statements 2021 | Market segments 23
Elsevier is a founding and driving partner of Research4Life,
a United Nations partnership initiative, providing free or low-cost
access to research for publicly funded institutions in the world’s
least resourced countries. Over 10,000 institutions in 125
countries participate.
For some journals, advertising and promotional income represents
a small proportion of revenues, predominantly from pharmaceutical
companies in healthcare titles.
Alongside journals, Elsevier has also invested in other solutions
to serve the needs of the research community. SSRN is an open
access online preprint community where researchers post
early-stage research, prior to publication in academic journals.
Scopus Author Profiles now allow the research community to
see preprints as a way of providing an early view into the focus
areas of a researcher.
Pure brings together all of an institution’s data sources (internal
and external) onto a single, intelligent and secure platform,
unlocking insights to improve research outcomes, while new
offering Data Monitor indexes datasets across a wide range of
repositories, allowing institutions to track their research data.
Digital Commons helps academic libraries showcase and
share their institutions’ research via institutional repositories
for greatest impact.
Digital solutions, such as ScienceDirect, Scopus and ClinicalKey,
are generally sold direct to customers through a dedicated sales
force based in offices around the world. Subscription agents
facilitate the sales and administrative process for remaining print
journal sales. Reference and educational content is sold directly
to institutions and individuals and accessed on Elsevier platforms,
while printed books are sold through retailers, wholesalers and
directly to end users.
Competition within science and medical reference content is generally
on a title-by-title and product-by-product basis and is typically with
learned society publishers and professional information providers,
such as Springer Nature, Clarivate and Wolters Kluwer. Decision tools
face similar competition, as well as from software companies and
internal solutions developed by customers.
2021 financial performance
Revenue
Adjusted operating profit
2021
£m
2,649
1,001
2020
£m
2,692
1,021
Underlying
growth
+3%
+3%
Portfolio
changes
1%
0%
Currency
effects
-6%
-5%
Total
growth
-2%
-2%
Improved underlying revenue growth driven by further
development of datasets and analytics
Underlying revenue growth was +3%, driven by continued good
growth in electronic revenue, which represents 88% of divisional
revenue. Print revenue declines moderated after the prior year’s
unusually steep declines.
In Databases & Tools and Electronic Reference, representing
over a third of divisional revenue, strong growth was driven by
content development and enhanced machine learning and
natural language processing-based functionality. Strong growth
continued in medical education and clinical solutions across
reference and decision support tools.
Underlying adjusted operating profit growth was +3%, in line
with underlying revenue growth. Adjusted operating margin
was largely unchanged with the positive impact from currency
movements more than offset by portfolio effects.
In Primary Research growth was driven by broader content sets,
increasing sophistication of analytics, and evolving technology
platforms. Article submissions remained at last year’s elevated
levels. The number of articles published grew strongly, with
continued growth in subscription articles and particularly strong
growth in open access articles, leading to further market share
gains in both payment models.
2022 outlook
Based on the improved performance in 2021, we expect
underlying revenue growth to remain above historical trends,
with underlying adjusted operating profit growth slightly
exceeding underlying revenue growth.
Revenue
£m
Underlying growth +3%
2,692
2,649
Adjusted operating profit
£m
Underlying growth +3%
1,021
1,001
2020
2021
2020
2021
RELX Annual report and financial statements 2021 | Scientific, Technical & MedicalMarket segmentsGovernanceFinancial statements and other informationFinancial reviewCorporate ResponsibilityOverview 24
Elsevier’s flagship
databases and tools:
supporting Shanghai Jiao Tong
University in achieving its
first‑class ambitions
About Elsevier’s
databases and tools:
Elsevier offers a suite of products
for academic researchers. Its
flagship solutions include
ScienceDirect, the world’s largest
platform dedicated to peer-
reviewed primary scientific and
medical research; and Scopus,
a comprehensive, curated abstract
and citation database with enriched
data and linked scholarly content,
with over 85m records across
27,000+ journals, sourced from
more than 7,000 publishers.
RELX Annual report and financial statements 2021 | Market segments 25
9m views
and downloads in 2021. Articles published
in Elsevier’s journals account for around
23% of the university’s research output
and approximately 32% of received citations
Shanghai Jiao Tong University has
developed rapidly and significantly.
We clearly see the benefits of
collaboration between Shanghai
Jiao Tong University library with
its edge in analytics and Elsevier’s
resource strength.
Li Xinwan
Library Director
Shanghai Jiao Tong University
Shanghai Jiao Tong University, based
in Shanghai, China has been a world
influencer for 125 years. Established in
1896 as Nan Yang College, the university
was one of the first national institutions
of higher learning in China. Former
president of China, Jiang Zemin,
is an alumnus.
In 2017, Shanghai Jiao Tong University held a respectable rank
in the 201-250 band of the Times Higher Education Rankings.
In just five years, the university has leapt to the world’s top 100
in both Times Higher Education Rankings and Shanghai Ranking
Consultancy’s Academic Ranking of World Universities; and is in
the top 50 in the QS World University rankings. Library Director
Li Xinwan strategically supports the university’s Double First-Class
ambition, a designation established in 2015 by China’s ministry
of education to develop elite universities and their individual
faculty departments into world-class institutions by the end of
2050. Li explains it as two components: first, to achieve top 100
in world rankings. Second, to achieve world-class subject level
ranking. The library supports the university strategy by harnessing
bibliometric insights and analysis from important databases such
as Elsevier’s flagship database, Scopus. “The Shanghai Jiao Tong
University library has a complete data analytics team which enables
us to help the university to understand, develop and tailor our
future science strategy,” says Li. Of the over 180 library staff,
60% are working in data analytics and information science. The
analytics-driven approach also guides the library’s investments
and resource allocation and “that has helped to drive the success
of the university".
Operating from China, Elsevier worked with Director Li to provide
data and analytical services to help inform the university’s plan.
The Elsevier and Shanghai Jiao Tong University teams worked
in partnership on several academic collaborations including
early career researcher development, joint librarian leadership
programmes and in 2020, an annual Problem Based Learning
national medical competition with the medical school.
The relationship has proven mutually beneficial: 23% of the
university’s research is published by Elsevier on ScienceDirect
and 32% of their citations are from ScienceDirect. Over the past
decade Shanghai Jiao Tong University steadily made strategic
investments in Elsevier’s flagship research and health solutions.
Shanghai Jiao Tong University’s more than 40,000 students
and 3,000 faculty use global databases including ScienceDirect,
eBooks, Scopus, ClinicalKey, ClinicalKey Student, SciVal, Knovel,
Engineering Village, Reaxys, Embase, and Amirsys. With 9m
views and downloads in 2021, Shanghai Jiao Tong University is
the highest user of ScienceDirect, the highest user of Scopus,
and the second highest user of ClinicalKey in China. About 1%
of ScienceDirect’s global usage comes from Shanghai Jiao
Tong University.
Shanghai Jiao Tong University library
RELX Annual report and financial statements 2021 | Scientific, Technical & MedicalMarket segmentsGovernanceFinancial statements and other informationFinancial reviewCorporate ResponsibilityOverview 26
Legal
We help lawyers win cases, manage their work
more efficiently, serve their clients better and
grow their practices. We assist corporations
in better understanding their markets and
monitoring relevant news. We partner with
leading global associations and customers to
help advance the Rule of Law across the world.
§ LexisNexis hosts 139bn legal and news
documents and records
§ On average, 1.9m new legal documents are
added daily from 71,000 sources, generating
137bn connections. In all, 33m legal documents
are processed per day
§ Nexis news and business content includes
over 39,000 premium sources in 37 languages,
covering more than 180 countries. It has data
including 400m company profiles with a
content archive that dates back 40 years
§ LexisNexis content includes more than
273m court dockets and documents, over
148m patent documents, 3.26m State Trial
Orders, and 1.37m jury verdict and
settlement documents
§ PatentSight includes objective ratings of the
innovative strength (Patent Asset Index) of
more than 135m patent documents from
more than 100 countries
§ In 2021, Law360 produced over 50,000 news
and analysis articles
§ Legal analytics tool Lex Machina has normalised
over 88m counsel mentions and over 47m party
mentions since 2016
§ LexisNexis is committed to advancing the Rule
of Law through operations and solutions that
provide transparency into the law in more
than 150 countries
Business overview
Legal provides legal, regulatory and business information
and analytics that help customers increase their productivity,
improve decision-making and achieve better outcomes.
LexisNexis Legal & Professional is headquartered in New York
and has further principal operations in Ohio, North Carolina
and Toronto in North America, London and Paris in Europe,
and cities in several other countries in Africa and Asia Pacific.
It has 10,500 employees worldwide and serves customers in
more than 150 countries.
Revenues for the year ended 31 December 2021 were £1,587m,
compared with £1,639m in 2020 and £1,652m in 2019. In 2021,
66% of revenue came from North America, 22% from Europe
and the remaining 12% from the rest of the world. Subscription
sales generated 79% of revenue and transactional sales 21%.
LexisNexis Legal & Professional is organised in market-facing
groups, focused on law firms & corporate legal, government &
academic and news & business markets. Services are delivered
primarily in electronic format, with print formats available where
there is customer demand. Content and tools are tailored to
the specific geographic markets served, supported by global
shared services organisations providing platform and product
development, operational and distribution services, and other
support functions.
In North America, electronic reference, decision tools and
analytics help legal and business professionals make better
informed decisions in the practice of law and in managing their
businesses. The standard products for legal research and
analytics are Lexis and Lexis+, which provide statutes and
case law together with analysis and expert commentaries from
secondary sources, such as Matthew Bender. Lexis and Lexis+
include the leading citation service, Shepard’s, which advises
on the continuing relevance of case law precedents. In North
America, LexisNexis also provides customers with news and
business information, ranging from daily legal news from its
Law360 brand, to company filings, public records information,
legal analytics tools, practical guidance, and efficiency solutions.
LexisNexis also partners with law schools to provide services
to students as part of their training.
LexisNexis continues to invest in and deploy advanced Artificial
Intelligence (AI) capabilities, including Machine Learning (ML),
that help power many of its products. LexisNexis introduced
Lexis+ in 2020 and continued to expand and enhance the product
in 2021. Lexis+ is a premium solution that integrates previously
standalone products including research, guidance, news, analytics
and brief analysis while delivering a step-change in visual design
for legal professionals. Lexis+ deploys extensive use of ML and
other advanced technologies to deliver its data-driven insights.
In 2021 LexisNexis introduced Lexis+ Litigation Analytics which
delivers big-picture analytics via a modern user experience to
inform and drive confidence in litigation. LexisNexis also extended
its premium news experience into Lexis+ via the addition of Legal
News Hub, which offers a Law360 reading experience for users
without leaving Lexis+.
LexisNexis continues to broaden the reach of its decision tools and
analytics. In 2021, LexisNexis expanded the analytics offering of
Lex Machina to cover 27 state courts and over 3 million individual
cases from select courts in New York, California, Delaware,
Georgia, Nevada, Oregon, Washington, and Texas. LexisNexis
RELX Annual report and financial statements 2021 | Market segments 27
also expanded the Context platform by adding Attorney Analytics
to complement the existing Judges, Courts, Corporations and
Expert Witness modules.
in Europe, Africa and Asia Pacific with local and international
legal, regulatory and business information. The most significant of
these businesses are in the UK, France, Australia and South Africa.
Law360 launched Law360 Pulse in 2021, providing business of
law coverage, timely insights and industry intelligence that caters
to law firms and legal departments. Similar to existing Law360
articles, Law360 Pulse articles are now fully discoverable on
Lexis+ as well as within the Law360 product.
In 2021, LexisNexis continued to enrich Practical Guidance, the
company’s practical guidance and ‘how to’ service (previously
Lexis Practice Advisor). The solution offers guidance on litigation
and transactional legal topics, while also delivering legal forms
and alternate clauses and checklists to accelerate drafting tasks.
Practical Guidance expanded Market Standards, an analytics tool
that delivers insights into M&A deals by comparing and analysing
publicly filed documents, to include Finance and Employment data.
In 2021, LexisNexis continued collaboration with joint venture
partner Knowable, an ML-enabled enterprise contracts intelligence
platform. Knowable’s legal text to data conversion processes are
used to create structured data, powering products such as the
Market Standards solution. In the Intellectual Property analytics
space, LexisNexis PatentSight analytics software is used by
corporations, government and academics worldwide to gain
strategic insights from patent information. In 2021, PatentSight
launched a new Sustainability feature, enabling decision-makers
to analyse IP related to the United Nation’s SDGs, broadening its
target audience to new markets.
In Canada, LexisNexis enhanced Lexis Advance Quicklaw with new
content and product features and launched Casemap Cloud in 2021.
LexisNexis also supplies Legal Business Solutions to law firms
and corporate legal departments. These enterprise software
solutions include legal spend management, matter management
and client engagement solutions.
In international markets outside North America, LexisNexis serves
legal, corporate, government, accounting and academic markets
In the UK, LexisNexis is a leading legal and tax information
provider offering an extensive collection of primary and secondary
legislation, case law, expert commentary, practical guidance,
and current awareness. In Legal, improved usability of primary
legislation and enhanced alerting has driven growth in the
LexisLibrary product. LexisNexis UK also grew adoption of its
practical guidance product LexisPSL, adding new international
content. Regulatory news offering MLex was re-platformed and
continues to grow. In Tax, the business expanded its customer base,
adding new workflow functionality to its core TolleyLibrary and
TolleyGuidance products.
In France, LexisNexis’ main offering, Lexis360, is a leading
integrated solution combining legal information, in-depth
analysis with JurisClasseur content, and practical guidance.
In 2021, LexisNexis released the next generation of Lexis360
with Lexis360 Intelligence, which includes additional analytics
features and an enhanced search engine.
In South Africa, LexisNexis launched Lexis Check, a tool that
integrates with Microsoft Word to scan documents, flag legal
references and leverage Lexis Library contents.
In Austria, LexisNexis upgraded Lexis360 with new Natural
Language Processing (NLP) based recommendations.
In the Middle East, LexisNexis launched a new HR platform with
English and Arabic legislation, practical guidance, and news for
HR professionals.
In the Pacific region, LexisNexis continued its focus on providing
authoritative local online content embedded in decision tools for
legal professionals. In 2021, LexisNexis enhanced Lexis Advance
with advanced data visualisations, including the expansion of
Paragraph citations to Unreported Judgements full text cases and
redesigned the user interface for Practical Guidance Australia.
LexisNexis UK legal practical guidance service
Provides Legal Analytics to companies and
law firms, enabling them to craft successful
strategies, win cases and close business
Provides integrated research, practical
guidance and data-driven insights via one
premium legal solution
Premier citations service
LexisNexis enterprise contract
intelligence offering
LexisNexis North American Research
Solution’s practical guidance service
Litigation solution providing legal language
analytics on judges and expert witnesses
Provides analytics and benchmarking of
SEC filings to optimise compliance strategies
Comprehensive online legal research tool that
transforms the way legal professionals
conduct research
LexisNexis UK flagship legal online product
Patent analytics solution that provides
insights into the strength, quality and value
of patent portfolios
RELX Annual report and financial statements 2021 | LegalMarket segmentsGovernanceFinancial statements and other informationFinancial reviewCorporate ResponsibilityOverview
28
In Asia, LexisNexis continued to expand its product offerings.
Lexis Analytics has been launched in Malaysia and Hong Kong.
This powerful tool delivers a new litigation experience to our
customers with advanced knowledge extraction capabilities.
Lexis China launched a Big Data visualisation analytics platform
to help legal practitioners locate similar cases, keep track of
adjudication standards, and predict case outcomes. Lexis India
launched a new eBook product, Lexis knowlEdge, with key
features such as true print, user personalisation and digital
library. LexisNexis Singapore launched Annotated Laws of
Singapore and the Data Privacy and Protection Practical
Guidance module.
Supporting its Rule of Law mission, LexisNexis published the
consolidated and authorised Laws of Nauru in partnership with
the Ministry of Justice and Border Control of the Government of
the Republic of Nauru. LexisNexis also signed an agreement to
publish and consolidate the Laws of the Cook Islands in partnership
with the Crown Solicitor’s Office of the Cook Islands. LexisNexis
Australia partnered with the National Association of Community
Legal Centers to provide access to legal information to over 100
community legal centres across Australia. To advance the Rule
of Law in New Zealand, LexisNexis also launched the inaugural
LexisNexis-NZBA Access to Justice Award in conjunction with
the New Zealand Bar Association in 2021, with the award to be
presented in 2022.
Additionally, the LexisNexis Rule of Law Foundation is partnering
with the International Bar Association on a nine-year global project
to provide a blueprint for achieving gender parity in the senior
levels of the legal profession. In 2021, LexisNexis established a
long term agreement with the National Bar Association, the
largest US network of predominantly African American attorneys
and judges, to collaborate on initiatives to combat systemic racism.
Market opportunities
Longer term growth in legal and regulatory markets worldwide
is driven by increasing levels of legislation, regulation, regulatory
complexity and litigation, and an increasing number of lawyers.
Additional market opportunities are presented by the increasing
demand for online information solutions, legal analytics and other
solutions, along with decision support solutions that improve the
quality and productivity of research, deliver better legal outcomes
and improve business performance. Notwithstanding this, legal
activity and legal information markets are also influenced by
economic conditions and corporate activity.
Strategic priorities
LexisNexis Legal & Professional’s strategic goal is to enable
better legal outcomes and be the leading provider of workflow
and productivity enhancing information, analytics and information-
based decision tools in its market. To achieve this, LexisNexis is
focused on introducing next-generation products and solutions
on the global New Lexis platform and infrastructure; incorporating
advanced technologies including ML and NLP; driving long-term
international growth; and upgrading operational infrastructure,
improving process efficiency and gradually improving margins.
In the US, LexisNexis is focused on the ongoing development of
legal research and practice solutions that help lawyers make
data-driven decisions. Over the coming years, progressive
product introductions will combine advanced technologies,
enriched content and sophisticated analytics to enable
LexisNexis customers to make data-driven legal decisions
and drive better outcomes for their organisations and clients.
Outside the US, LexisNexis is focused on growing online services
and developing further high-quality actionable content and decision
tools, including the development of additional practical guidance
and analytics tools. Additionally, LexisNexis is focusing on the
expansion of its activities in emerging markets.
LexisNexis is also continuing its mission to advance the rule of
law around the world through the efforts of LexisNexis Rule of Law
Foundation, a non-profit entity, which conducts projects globally
to promote transparency of the law, access to legal remedy,
equal treatment under the law, and independent judiciaries.
Business model, distribution channels and competition
LexisNexis Legal & Professional products and services are
generally sold directly to law firms and to corporate, government,
accounting and academic customers on a paid subscription basis,
with subscriptions with law firms often under multi-year contracts.
Principal competitors for LexisNexis in US legal markets
are Westlaw (Thomson Reuters), CCH (Wolters Kluwer) and
Bloomberg. In news and business information key competitors
are Bloomberg and Factiva (News Corporation).
Significant international competitors include Thomson Reuters,
Wolters Kluwer and Factiva.
Revenue by format
Revenue by geographical market
Revenue by type
£1,587m
Print
12%
Face-to-face
1%
£1,587m
Rest of world
12%
£1,587m
Transactional
21%
Europe
22%
Electronic
87%
North
America
66%
Subscription
79%
RELX Annual report and financial statements 2021 | Market segments 29
2021 financial performance
Revenue
Adjusted operating profit
2021
£m
1,587
326
2020
£m
1,639
330
Underlying
growth
+3%
+5%
Portfolio
changes
-1%
-1%
Currency
effects
-5%
-5%
Total
growth
-3%
-1%
Improved underlying revenue growth driven by legal analytics
Underlying revenue growth was +3%, with legal analytics
continuing to drive good underlying growth in electronic
revenue, which represents 87% of divisional revenue. Print
revenue declined in line with historical trends.
Underlying adjusted operating profit growth of +5% was ahead
of underlying revenue growth driving margin improvement,
reflecting further process innovation.
We continued the release of broader datasets and application
of machine learning and natural language processing
technologies, and introduced further enhancements in the
functionality of our integrated research products and market
leading analytics. Lexis+ continues to perform well, with
increasing adoption from customers across all segments
of the market.
Trends in our major customer markets have seen some
improvement. Renewal rates have been strong, and new
sales grew well.
2022 outlook
Based on the improved performance in 2021, we expect
underlying revenue growth to remain above historical trends,
with underlying adjusted operating profit growth continuing to
exceed underlying revenue growth.
Revenue
£m
Underlying growth +3%
1,639
1,587
Adjusted operating profit
£m
Underlying growth +5%
330
326
2020
2021
2020
2021
RELX Annual report and financial statements 2021 | LegalMarket segmentsGovernanceFinancial statements and other informationFinancial reviewCorporate ResponsibilityOverview 30
Lexis+:
delivering accurate, data-driven
insights, greater efficiency and
better results via a modern
user interface
About Lexis+:
Lexis+ is a feature-rich, premium
legal solution that includes a suite
of tools built into one experience.
The Lexis+ ecosystem unites
legal research, Practical Guidance,
Litigation Analytics, Brief Analysis,
legal news and enhanced tools
with a modernised user interface
to deliver data-driven insights,
greater efficiency and better results.
Lexis+ is powered by advanced
machine learning and natural
language processing technologies.
RELX Annual report and financial statements 2021 | Market segments 31
<60mins
to conduct all necessary research using Lexis+
for emergency relief cases
At Faruki, we encounter a wide
variety of complex cases, so we
need complete confidence that we
are getting the right answers in the
most efficient manner. Through
its streamlined, easy-to-navigate
search options and modern user
interface, Lexis+ provides quick,
reliable access to the legal authority
needed to seek relief for our clients,
enabling us to take action in under
an hour instead of days or weeks.
Stephen A. Weigand
Partner
Faruki PLL
For more than 30 years, Faruki, a law
firm based in Dayton, Ohio, has focused
much of the firm’s practice on business
litigation. Within its business litigation
practice, Faruki’s attorneys regularly
need to research and understand
nuanced issues in a wide variety of
complex cases. With its integration
between research and analytics, Lexis+
supports Faruki’s broad set of use cases.
Considering the constant stream of new cases, amendments
to statutory law, and updates to rules, Faruki depends on
Lexis+ to provide accurate access to legal authority from
state and federal jurisdictions across the country.
Excellence is one of Faruki’s four core values. With 15% more
total federal and state case law than the nearest competitor,
that is posted faster over 79% of the time, Lexis+ provides the
means through which Faruki can ensure that its work product
and filings with dozens of courts in Ohio and across the country
meet the firm’s high-quality standards.
In addition to accuracy through data-driven insights, Faruki
relies on Lexis+ to provide efficient results. Within the past
year, Faruki sought emergency injunctive relief on six
occasions. In cases seeking emergency relief, it is critical
for Faruki attorneys to be able to research, identify, and cite
applicable cases and other legal authority in support of their
clients’ requests for injunctive relief, quickly and accurately.
In many of these cases, there may be only one to three days,
if not hours, to file a complaint and motion for emergency
injunctive relief with the courts – and the efficiency afforded
by Lexis+ allows Faruki attorneys to be agile and responsive
to the needs of their clients.
Cases involving emergency injunctive relief often involve
high stakes for Faruki’s clients – trade secrets may be at risk,
non-competes may be violated, and assets may be at risk of
being dissipated. Through its streamlined, easy-to-navigate
search options and modern user interface, Lexis+ provides
quick, reliable access to the legal authority needed for Faruki
to seek the appropriate relief for its clients. In some cases
involving emergency relief, Faruki relied on Lexis+ and was able
to complete all necessary research in fewer than 60 minutes.
Montgomery County Courthouse, Dayton Ohio
RELX Annual report and financial statements 2021 | LegalMarket segmentsGovernanceFinancial statements and other informationFinancial reviewCorporate ResponsibilityOverview 32
Exhibitions
Our business leverages industry expertise,
large data sets and technology to enable
our customers to build their businesses
by connecting face-to-face or digitally and
generate billions of dollars of revenues for
the economic development of local markets
and national economies around the world.
§ There are more than 400 events in the
RX portfolio
§ As vaccine penetration increased and
government restrictions eased the event
industry began to reopen in 2021, especially
in the second half
§ RX ran 269 face-to-face events in 19 countries,
up from 169 events in 2020
§ These RX events helped participants build their
businesses by finding new products, suppliers
and customers, learning about their industry’s
innovations and networking effectively
§ Our face-to-face events and brands all have
digital and data tools to extend the reach of
the event beyond the exhibition hall and
increase the value of participating
§ 43 industry sectors are served in 22 countries
across the globe
§ Reed Exhibitions rebranded to RX in 2021 to
reflect the increasingly digital and data-driven
nature of the offer to customers
Business overview
Exhibitions combines industry expertise with data and digital tools
to help customers connect digitally and face-to-face, learn about
markets, source products and complete transactions.
RX has its headquarters in London and has further large offices
in Paris, Vienna, Düsseldorf, Moscow, Norwalk (Connecticut),
Mexico City, São Paulo, Beijing, Shanghai, Tokyo, Singapore and
Sydney. RX has 3,500 employees worldwide and its portfolio of
events serves 43 industry sectors.
Revenues for the year ended 31 December 2021 were £534m
compared with £362m in 2020 and £1,269m in 2019. In 2021,
19% of RX’s revenue came from North America, 35% from
Europe and the remaining 46% from the rest of the world on
an event location basis.
As vaccine penetration increased and government restrictions
reduced, RX ran 269 events, up from 169 in 2020. Event momentum
built during the year with 182 events happening in the second
half of the year. Our face-to-face events attracted more than
3.3m participants.
Key events restarting in the second half of 2021 for the first time
since the Covid-19 pandemic included JCK (USA, Jewellery),
Cannes Yachting Festival (France, Marine), WTM (UK, Travel),
New York Comic Con (US, Pop Culture) and MIPCOM (France, TV).
RX continued to grow the number of digital products and their
usage by customers in 2021. Revenue from digital products
and events grew very strongly in 2021, accounting for 11% of
total revenues.
RX organises influential events in key markets focused on
addressing the needs of the industry, where participants from
around the world meet face-to-face to do business, to network and
to learn. Its events encompass a wide range of sectors. They include
construction, cosmetics, electronics, energy and alternative
energy, engineering, entertainment, gifts and jewellery, healthcare,
hospitality, interior design, logistics, manufacturing, media,
pharmaceuticals, real estate, recreation, security and safety,
transport and travel.
Market opportunities
RX is positioned for continued recovery in face-to-face events
as the impact of the Covid-19 pandemic diminishes.
This will occur in parallel with an increased use of digital tools,
both standalone and as part of multi-channel events.
These events and digital tools are a key lever for our customers’
businesses and national economies to recover and grow.
Growth in the exhibitions market is influenced both by
business-to-business marketing spend and by business
investment. Historically, these have been driven by levels
of corporate profitability, which in turn has followed overall
growth in gross domestic product. Emerging markets and
higher growth sectors provide additional opportunities. RX’s
broad geographical footprint and sector coverage allows it to
respond effectively to changes in global trade and capture
growth opportunities as they emerge.
RELX Annual report and financial statements 2021 | Market segments 33
As the business emerges from the pandemic, RX is committed
to continuously improving customer solutions and experience
by developing global technology platforms based on industry
databases, digital tools and analytics. By providing a variety of
services, including its integrated web platform, the company
continues to increase customer value and satisfaction by
proactively putting the right buyers and sellers together on
the event floor. Increasingly, digital and multi-channel services
such as active matchmaking are becoming a normal part of
the customer expectation and product offering, enhancing the
value delivered through attendance at the event. Using customer
insights, RX has developed an innovative product offering that
underpins the value proposition for exhibitors by broadening
their options in terms of the type and location of stand they
take and the channels through which they can address
potential buyers.
Business model, distribution channels and competition
In a normal year, over 70% of RX’s revenue is derived from exhibitor
fees, with the balance primarily consisting of admission charges,
conference fees, sponsorship fees and online and offline advertising.
Exhibition space is sold directly or through local agents where
applicable. RX often works in collaboration with trade associations,
which use the events to promote access for members to domestic
and export markets, and with governments, for which events can
provide important support to stimulate foreign investment and
promote regional and national economic activity. Increasingly, RX
is offering visitors and exhibitors the opportunity to interact before
and after the show using digital tools such as online directories,
matchmaking and mobile apps.
RX is one of the largest global event organisers in a fragmented
industry, holding a global market share of less than 10%. Other
international exhibition organisers include Informa, Clarion and
some of the larger German Messen, including Messe Frankfurt,
Messe Düsseldorf and Messe Munich. Competition also comes
from industry trade associations and convention centre and
exhibition hall owners.
As some events are held other than annually, growth in any one
year is affected by the cycle of non-annual exhibitions. Covid-19
has disrupted this cycle and non-annual events may be operating
out of their traditional cycle.
Strategic priorities
RX’s long-term strategic goal is to deliver a platform for industry
communities to conduct business, network and learn through
a range of market-leading events and digital tools in all major
geographic markets and higher growth sectors, enabling exhibitors
to target and reach new customers quickly and cost effectively,
resulting in measurably higher value and improved outcomes
for its customers.
Organic growth will be achieved by continuing to generate greater
customer value by combining the best of face-to-face events with
data and digital tools. RX will continue to seek organic growth
through launches that are tightly focused on industries and
geographies that are recovering most strongly from the pandemic.
While RX’s strategic goal remains unchanged, its customers and
products have been greatly impacted by the Covid-19 pandemic.
The immediate aim has been and continues to be supporting the
commercial recovery and long-term growth of the industries it
serves and countries in which it operates.
RX responded swiftly to the challenges of the pandemic to best
meet future customer needs in the following ways:
§ Digital initiatives: digital tools and services have been widely
deployed and enhanced to replace some of the value of the
cancelled face-to-face events and to increase the value from
restarted face-to-face events. New digital tools have been
rapidly developed and launched.
§ Operational efficiency: a leaner and more nimble structure
has been put in place, better able to respond to changing
circumstances and customer needs. The new structure
allows even more effective leveraging of RX’s global reach
and scale. Global technology platforms and specialist
functions enable faster and more agile deployment of
product and process innovation.
§ Portfolio optimisation: RX continues actively to shape its
portfolio through a combination of new launches, strategic
partnerships and selective acquisitions in faster growing
sectors and geographies, and during the pandemic has
withdrawn from markets and industries that have been
particularly impacted and with lower long-term
growth prospects.
These responses, as well as optimising performance during 2021,
provide a stronger platform for the recovery and longer-term
success of RX.
RELX Annual report and financial statements 2021 | ExhibitionsMarket segmentsGovernanceFinancial statements and other informationFinancial reviewCorporate ResponsibilityOverview 34
LONDON
Premier global event for the travel industry
The North American jewellery industry’s
premier event
International exhibition of environmental
equipment, technologies and services
One of the largest business gifts & home
fairs in China
Europe’s premier in-water boat fair
The East Coast’s largest pop culture convention
Asia’s sourcing and networking platform for
the complete aluminium industry chain
Innovations for smart sheet metal working
Machine tools and metalworking exhibition
serving ASEAN
International Security Conference &
Exhibition
The Middle East’s meeting place for the
travel trade
International perfumery and cosmetics
exhibition
International trade fair for autoparts,
equipment and services
Japan’s comprehensive exhibition for smart
and renewable energy
Japan’s one-stop shop for office related
products and services
Latin America’s event for hardware,
electronics and construction
International trade fair for the catering,
restaurant and hotel trade
One of the largest & longest standing
electronics manufacturing trade shows
Korea’s international marine, shipbuilding,
offshore, oil & gas exhibition
Australia’s trade event for the retail industry
Germany’s international bar & beverage
trade show
China’s exhibition focused on showcasing
a comprehensive line up of upstream
materials and equipment
The world’s property market
Revenue by format
Revenue by geographical market
Events revenue by source
£534m
Electronic
11%
£534m
North
America
19%
£534m
Admissions
and other
28%
Europe
35%
Face-to-face
89%
Rest of
world
46%
Exhibitor
fees
72%
RELX Annual report and financial statements 2021 | Market segments 35
2021 financial performance
Revenue
Adjusted operating profit
nm - not meaningful
* includes cycling effects of +12%
2021
£m
534
10
2020
£m
362
(164)
Underlying
growth
+44%
nm
Portfolio
changes
+11%*
nm
Currency
effects
-7%
nm
Total
growth
+48%
nm
Strong underlying revenue growth and positive operating
result
Underlying revenue growth was +44%, driven by a gradual
reopening of exhibition venues across geographies. The
difference between underlying and constant currency
growth also reflects the resumption of cycling events.
In 2021 we managed our event schedule flexibly, responding
to changes in local government policies, enabling us to hold a
total of 269 face-to-face events during the year. We continued to
make good progress on digital initiatives, with a range of digital
tools supporting our physical events, and digital revenues
growing strongly.
The return to a positive adjusted operating result reflects
the increased activity levels and a lower cost structure.
2022 Outlook
We expect a year of strong underlying revenue growth. The
operating result will continue to benefit from the structurally
lower cost base.
Revenue
£m
Underlying growth +44%
534
362
Adjusted operating profit
£m
Underlying growth nm
(164)
10
2020
2021
2020
2021
RELX Annual report and financial statements 2021 | ExhibitionsMarket segmentsGovernanceFinancial statements and other informationFinancial reviewCorporate ResponsibilityOverview 36
SinoCorrugated:
Responding to Covid-19 related
travel restrictions, RX provided
exhibitors with face to face
and online opportunities
to meet customers
About SinoCorrugated:
SinoCorrugated is the world’s leading event
for the international corrugated packaging
industry. Established in Shanghai in
2001, the event has grown to encompass
seven co-located events covering the
complete converting supply chain. In 2021,
SinoCorrugated became the first major
international trade show for corrugated
equipment and consumables to reopen to
the public, both in-person and online, since
the start of the Covid-19 pandemic. Over
300 exhibitors and 30,000 visitors attended
the physical event in Shanghai, and more
than 9,500 remote international buyers
joined the hybrid platform to source vital
equipment and supplies.
RELX Annual report and financial statements 2021 | Market segments 37
9,500+
international visitors attended SinoCorrugated virtually
to source new machinery and supplies
SinoCorrugated’s innovative
hybrid platform and online
business matchmaking enabled
us to meet key international
customers who were unable
to attend due to Covid.
He Guosheng
Chairman,
Keshenglong Carton Packing Machine Co.
Keshenglong is one of China’s leading
carton printing and packaging machine
manufacturers.
Established in Guangzhou in 1998, it covers the complete
supply-chain, from research & development, manufacturing
and assembly, through to sales and customer support, and
has won multiple awards for innovation and enterprise. In
2017, Keshenglong acquired the world’s leading corrugated
manufacturing brand, Shinko, based in Osaka, Japan. Today
the company exports its extensive range of high-speed
flexo printing, cutting and folding machines to over 70
countries worldwide.
Keshenglong has exhibited at SinoCorrugated every year since
it was first held in 2001, regarding it as an essential showcase
for innovation, demonstration and international sales. When
foreign buyers were unable to attend SinoCorrugated 2021
(14-17 July) in Shanghai due to Covid-19 travel restrictions,
the company became concerned about the impact on exports.
Foreseeing such difficulties, RX provided SinoCorrugated
with access to remote attendees by reimagining it as a hybrid
event combining a safe and secure physical expo with a virtual
platform. Through its Targeted Attendee Programme (TAP),
the SinoCorrugated team was able to match Keshenglong’s
products with international buyers’ needs and connect them
via the platform to the company’s virtual stand. They also
helped Keshenglong to secure one-to-one virtual meetings
with pre-qualified international sales prospects.
Product demonstration is key to capital equipment sales.
At SinoCorrugated 2021, RX continued live streaming on
YouTube, Facebook, LinkedIn, and for the first time a hybrid
platform was available to exhibitors. Keshenglong took
advantage of the technology to stream live manufacturing
demos direct from their factory and show booth, showcasing
the technical advantages of its equipment to potential
customers who were unable to travel to the event.
The company signed four major contracts at SinoCorrugated
2021, and concluded 16 virtual meetings with targeted
international buyers, including from Japan, Lebanon
and Australia.
Exhibitors and visitors at SinoCorrugated 2021
RELX Annual report and financial statements 2021 | ExhibitionsMarket segmentsGovernanceFinancial statements and other informationFinancial reviewCorporate ResponsibilityOverview 38
Corporate
Responsibility
RELX Annual report and financial statements 2021 Directors’ duties and
Section 172 Statement
The Directors of RELX PLC – and those of
all UK companies – must act in accordance
with their duties under the Companies Act
2006 (the Act). These include a
fundamental duty to promote the success
of the Company for the benefit of its
members as a whole. The Board of RELX
PLC, and its individual members, consider
that they have done so for the year ending
31 December 2021.
Details of how the Board and its Directors
have fulfilled these duties can be found
throughout our 2021 Annual Report, and
therefore the following sections have been
incorporated by reference into this Section
172 Statement and, where necessary, the
RELX 2021 Strategic Report:
Business Model and Strategy
Corporate Responsibility Report
Principal Risks
Culture and Workforce Policies
Board decision-making
Stakeholder Engagement
5-7
38-58
66-69
80-81
81-83
84-88
The Corporate Responsibility Report is an
integral part of our Annual Report and
Financial Statements. This section
highlights progress on our 2021 corporate
responsibility objectives. The full 2021
Corporate Responsibility Report is
available at www.relx.com/go/CRReport
Non-financial information statement
RELX is required to comply with the
reporting requirements of Sections 414CA
and 414CB of the Companies Act 2006,
which relate to non-financial information.
The list below outlines for our stakeholders
where this information can be found:
Reporting requirement:
Environmental matters
Employees
Social matters
Human rights
Anti-corruption and
anti-bribery matters
Policies, due diligence
processes and outcomes
Description and
management of principal
and emerging risks and
impact of business activity
Description of
business model
Non-financial metrics
47, 52-53,55-57
49-50
41-49
41-50
46-48, 51-52
46-50, 51-52
66-69
5
40
39
Section 172 of the Act requires the
Directors to have regard to, among other
matters, the interests of the Company’s
stakeholders as part of working to promote
the success of the company. The Board
recognises the importance of building and
maintaining sound relationships with
RELX’s key stakeholders in allowing the
Group to achieve its business aims. Among
the Group’s many and varied stakeholders,
the Board has identified investors,
employees, customers, suppliers and the
communities in which we operate, as the
Company’s key stakeholders. Given its size
and the diversity and global nature of its
business, stakeholder engagement at
RELX takes place at all levels across the
Group. To ensure adequate visibility of key
stakeholders views, the Board received a
detailed overview covering engagement
channels and activities the Company has
with each of its key stakeholders.
In 2021 the Board also continued to
oversee our substantial corporate
responsibility activities, and maintained
its focus on RELX’s environmental, social
and governance (ESG) performance.
The Board’s oversight on ESG matters
is detailed on page 76 in the Chair’s
introduction to Corporate Governance
Review, page 83 as part of Board
decision-making, and page 88 as part
of the Board’s engagement with the
communities in which we operate.
In the year, we held our biennial
corporate responsibility (CR) survey of
key stakeholders to help us identify our
material CR issues and to set and test our
CR objectives. They ranked having the right
people as having the biggest impact on our
business and unique contributions as the
area where we have the most significant
impact on society.
RELX Annual report and financial statements 2021Market segmentsGovernanceFinancial statements and other informationFinancial reviewCorporate ResponsibilityOverview 40
2021 key corporate responsibility data
Revenue (£m)
People
Number of full-time equivalent employees (year-end)
Percentage of women employees (%)^
Percentage of women managers (%)^
Percentage of women senior leaders (%)1^
Percentage of ethnic minority US/ UK managers (%)^
Percentage of ethnic minority US/UK senior leaders (%)1^
Community 2
Total cash and in-kind donations (products, services and time (£m))
Market value of cash and in-kind donations (£m)
Percentage of staff volunteering (%)3
Total number of days volunteered in company time
Health and safety (lost time) 4
Incident rate (cases per 1,000 employees)^
Frequency rate (cases per 200,000 hours worked)^
Severity rate (lost days per 200,000 hours worked)^
Number of lost time incidents (>1 day)^
Socially Responsible Suppliers (SRS)
Number of key suppliers on SRS database5^
Number of independent external audits^
Percentage signing Supplier Code of Conduct (%)6^
Environment 7
Total energy (MWh)^
Renewable electricity purchased (MWh)8^
Percentage of electricity from renewable sources (%)8^
Water usage (m3)^
Climate change (tCO2e) 9
Scope 1 (direct) emissions^
Scope 2 (location-based) emissions^
Scope 2 (market-based) emissions^
Scope 3 (business flights)10^
Scope 1 + Scope 2 (location-based) + Scope 3 (flights) emissions^
Scope 1 + Scope 2 (market-based) + Scope 3 (flights) emissions^
Waste 11
Total waste (t)^
Percentage of waste recycled (%)^
Percentage of waste diverted from landfill (%)^
Paper
2021
7,244
33,500
50
44
33
19
11
10.4
20.6
32
10,362
0.07
0.01
0.02
2
359
111
96
2020
7,110
33,200
51
43
31
17
11
9.2
17.6
26
6,821
0.11
0.01
0.07
3
412
99
91
117,161
101,510
100
175,372
133,238
125,019
100
215,858
5,226
43,445
7,715
5,032
53,703
17,973
2,192
81
89
4,516
53,131
10,773
18,652
76,299
33,941
2,618
73
87
2019
7,874
33,200
50
42
30
9.2
18.7
45
12,127
0.50
0.06
0.69
14
354
93
91
163,628
136,410
96
331,913
7,848
68,229
17,704
62,254
138,331
87,806
4,587
50
69
2018
7,492
32,100
51
42
28
8.7
17.6
42
11,720
0.28
0.03
0.69
8
348
84
89
179,228
125,707
81
332,490
7,477
74,279
16,004
68,363
150,119
91,844
6,448
64
72
2017
7,341
31,000
51
43
29
7.5
12.6
45
12,670
0.55
0.06
1.15
17
344
83
91
186,228
117,799
72
344,918
8,231
84,590
21,831
58,034
150,855
88,096
6,664
69
76
Production paper (t)^
Sustainable content (%)12^
40,910
98
36,259
92
34,599
96
35,555
90
36,484
90
1
We define senior leaders as either a) colleagues with a management grade of 17 and above, based on our job architecture framework developed with external input and b) colleagues with a management
grade of 16 (and above) with a hierarchy of 4 (or 5 in some circumstances) reporting levels from the CEO.
2 Data reporting methodology assured by Business for Societal Impact. See Appendix 2 of 2021 Corporate Responsibility Report for B4SI assurance statement 2021. Reporting period covers 12 months
from December 2020 to November 2021.
3
All Group employees can take up to two days off per year (coordinated with line managers) to work on community projects that matter to them. Number of staff volunteering reflects the number of staff
using their two days, as well as those who participated in other company-sponsored volunteer activities.
4
Accident reporting covers approximately 86% of employees.
5 We continue to refine our supplier classification and hierarchy data, contributing to changes in the number of suppliers we track year-on-year.
6
Signatories to the RELX Supplier Code of Conduct include suppliers who have not signed the Supplier Code, but have equivalent codes. These suppliers are subject to the same audit requirements as
Supplier Code signatories.
7 Environmental data (carbon, energy, water, waste) covers the 12 months from December 2020 to November 2021.
8
We purchase renewable electricity on green tariffs at locations in the UK, Austria and the Netherlands. US Green-e certified Renewable Energy Certificates (RECs) are applied to electricity consumption
in the US. US Green-e certified RECs are also purchased to equal 100% of the electricity consumption outside the US, but we do not apply any market-based emissions factors on this portion of electricity
consumption.
9
Market-based and location-based emissions have been reported in compliance with the updated GHG Protocol guidance. See our reporting guidelines and methodology from the link below.
10 Covers all flights booked through our corporate travel partner. All years use the DEFRA RF emissions factor for air travel in Scope 3 (other).
11 Waste figures represent all operations, including estimates from non-reporting locations.
12 % in PREPS grade 3 or 5 (known and responsible sources) or certified to FSC or PEFC. Previous years restated based on this methodology for the 2025 Targets.
^ Data assured by EY. See Appendix 3 of 2021 Corporate Responsibility Report for EY assurance statement 2021
See our reporting guidelines and methodology for more details.
RELX Annual report and financial statements 2021 | Corporate responsibility
Corporate responsibility overview
41
We continued to build on our strong
corporate responsibility (CR)
performance during the year,
further improving on our key
internal metrics and extending the
scope of our unique contributions.
We define CR as the way we do business, working to increase our
positive impact and reduce any negative effects of conducting our
operations. It ensures good management of risks and
opportunities, helps us attract and retain the best people and
strengthens our corporate reputation.
It means performing to the highest commercial and ethical
standards and channelling our knowledge and strengths, as
global leaders in our industries, to make a difference to society.
The Board, senior management and our CR Forum oversee CR
objectives and performance.
We concentrate on the contributions we make as a business
and on good management of the material areas that affect
all companies:
1. Our unique contributions
2. Governance
3. People
4. Customers
5. Community
6. Supply chain
7. Environment
We are a signatory of the United Nations Global Compact (UNGC)
and its 10 principles related to labour, human rights, environment
and anti-corruption, and are dedicated to advancing the UN’s
Sustainable Development Goals (SDGs), which aim to end poverty,
protect the planet and ensure prosperity for all people by 2030.
The Covid-19 pandemic did not alter our CR focus. As described
in this section, we continued to deploy our expertise in
numerous ways.
1. Our unique contributions
We make a positive impact on society through our knowledge,
resources and skills, including:
§ Protection of society
§ Advance of science and health
§ Promotion of the rule of law and justice
§ Fostering communities
§ Universal sustainable access to information
Risk
LexisNexis Risk Solutions (LNRS) products and services align
with SDG 16 (Peace, Justice and Strong Institutions) and SDG 10
(Reduced Inequalities), among others. For example, they help law
enforcement keep communities safe and protect society by
detecting and preventing fraud across a range of business sectors
and at the US federal, state and local government levels. In the year,
LNRS partnered with local police departments, including the
Athens-Clarke County Police Department in Georgia and the
Covington Police Department in Tennessee, to provide community
crime maps with automated alerts notifying citizens of crimes in
their area.
LNRS colleagues developed the ADAM programme in 2000 to help
the National Center for Missing & Exploited Children (NCMEC) find
missing children. ADAM distributes missing child alert posters to
law enforcement, hospitals, libraries and businesses within specific
geographic search areas. In the year, LNRS and the NCMEC used
the ADAM Programme to distribute over 1.7 million alerts for over
1,800 missing children cases. Through continued promotional
efforts, the system gained over 2,200 new subscribers who consent
to receiving missing child alerts in their area. In the year, ADAM was
included in GSTV, a national media network located at 26,000 US
fuel retailers.
ADAM features geo-targeting functionality to pinpoint specific
areas to increase recoveries within 24 hours of alert distribution. In
2021, five missing children were recovered through ADAM and,
since 2000, over 190 missing children have been located through the
programme. During the year, we worked with UK Charity, Missing
People, to explore how ADAM functionality could help automate
their distribution of alerts when children and adults go missing in
the UK.
LNRS is working to address a lending blind spot for those seeking to
advance personal and professional objectives – such as purchasing
a house or expanding a small business – who are unable to gain
credit because of missing or outdated negative information. In the
year, Riskview widened financial inclusion for marginalised groups,
including those without credit history, by providing alternative data
sets not in traditional credit reports, such as home ownership,
education status and professional licences.
The challenge of financial inclusion is often magnified in
low-income countries given gaps in identity verification and
credit risk assessment. LexisNexis Risk Solutions’ ThreatMetrix,
in partnership with fintech partners, is deriving alternative data that
can be used to assess risk from consumers who use smartphones.
Using LNRS alternative credit sources, to help more citizens gain
access to credit in 2021, two pilots were extended in Colombia and
three new pilots were launched in Mexico.
RELX Annual report and financial statements 2021 | Corporate responsibility overviewMarket segmentsGovernanceFinancial statements and other informationFinancial reviewCorporate ResponsibilityOverview 42
The RELX SDG
Customer Awards
In 2021, we held the second RELX SDG Customer Awards to recognise the
exceptional efforts of our customers who share our ambition to advance the
SDGs. Customers were nominated by colleagues in each RELX business and
the four winners were announced at the seventh RELX SDG Inspiration Day on
22 June. The RELX SDG Inspiration Day is held annually and brings together
representatives from business, NGOs, academia and civil society to catalyse
action on the SDGs.
350+
participants at RELX SDG
Inspiration Day where the SDG
customer awards were announced
We recognised four customers
for their contributions to the UN
Sustainable Development Goals
Danish renewable energy provider, Ørsted, was
nominated by LexisNexis Risk Solutions for the
company’s dramatic transformation from a fossil
fuel provider to a renewable energy provider. Ranked
one of the world’s most sustainable energy company
in the Corporate Knights Global 100 Index for three
consecutive years, the company is on track to be
carbon-neutral in energy generation and operations
by 2025.
Nominated by Elsevier, the University of São Paulo,
Brazil, was awarded for its efforts to increase student
diversity and environmental sustainability. Ranked
48th out of more than 1,100 institutions in the Times
Higher Education impact ranking for its work towards
the SDGs, the university has increased the number
of students from underrepresented minority groups
and disadvantaged backgrounds through affirmative
action, financial support packages, subsidised meal
programmes and tailored educational support. The
University has also implemented programmes to reduce
its energy use, offers free bikes to students, and works
with local communities to protect biodiversity.
The International Commission of Jurists was nominated
by LexisNexis Legal & Professional for advancing the
rule of law and protecting human rights, particularly in
Myanmar where, prior to the military coup, it partnered
with the supreme court to support the development of
legal research capabilities and the publishing of
commercial cases.
A+E Networks, an American multinational broadcasting
company, was awarded for its commitment to diversity
and inclusion both on and off screen. A+E Networks
works in partnership with RX France to promote
equality and amplify underrepresented voices across
the television industry and is a founding partner of the
MIPCOM Diversify TV Excellence Awards. The annual
Women in Global Entertainment Power Lunch was also
launched by A+E Networks 10 years ago and is now a
meaningful global platform for female executives to
connect, mentor and inspire one another.
Since 1952, we’ve been
working to defend the
rule of law and ensure its
connection to human rights
is respected around the
world. We are honoured
to have RELX and our
colleagues at LexisNexis
Legal & Professional
recognise this work and
that of our colleagues in
Myanmar. We look forward
to continue collaborating so
that laws are well known,
predictable and accessible
by people across the world.
Saman Zia-Zarifi
Secretary General of the
International Commission
of Jurists
RELX Annual report and financial statements 2021 | Corporate responsibility 43
1. Our unique contributions (continued)
Scientific, Technical & Medical
Elsevier, the world’s leading provider of scientific, technical
and medical information, plays an important role in advancing
human welfare and economic progress through its science and
health information, which spurs innovation and enables critical
decision-making. Among others, Elsevier makes a significant
contribution to SDG 3 (Good Health and Well-Being), SDG 5
(Gender Equality) and SDG 10 (Reduced Inequalities).
To broaden access to its content, Elsevier supports programmes
where resources are often scarce. Among them is Research4Life,
a partnership with UN agencies and over 200 publishers; we provide
core and cutting-edge scientific information to researchers in 125
low- and middle-income countries. As a founding partner and
leading contributor, Elsevier provides around 20% of the material
available in Research4Life, encompassing approximately 5,000
journals and around 27,000 e-books. In 2021, there were over
1m Research4Life downloads from ScienceDirect.
In serving the global scientific research community, Elsevier
published over 600,000 articles in 2021. Colleagues also held a
free programme on Demystifying the Covid-19 Vaccines which
was broadcast in 27 countries across Zoom and YouTube while
simultaneously translated into German, French, Spanish, Italian,
Portuguese, Polish and Russian. The webinar featured John
McConnell, Editor-in Chief of The Lancet Infectious Diseases,
and Ylann Schemm, Director of the Elsevier Foundation, discussing
how vaccines work, their safety and efficacy in preventing infection,
and answering questions from the general public to address
misinformation around Covid-19 vaccines. In 2021, Elsevier
also launched the free India Covid-19 Healthcare Hub, extending
the Covid-19 Healthcare Hub launched at the beginning of the
pandemic, to provide resources and online learning tools on
the prevention and management of Covid-19.
To bridge the clinical practice gap in low-income countries,
the Elsevier Foundation continued its partnership with Amref
Health Africa on the LEAP programme, scaling mobile learning
for healthcare workers in Ethiopia, including a comprehensive
Covid-19 training module.
Elsevier supports partnerships to advance inclusion and diversity
in science, research in developing countries and global health,
which encompasses a collaboration with the Julius L Chambers
Biomedical Biotechnology Research Institute at North Carolina
Central University, to facilitate the adoption of evidence-based
interventions to address health disparities.
Irene Walsh, Chief Design Officer of Elsevier’s 3D4Medical, works
with leading 3D artists, medical experts, developers and
designers to bring human anatomy to life in Complete Anatomy —
an educational platform that enables students to interact in-depth
with body systems. In the year, she held a workshop with 60+
participants exploring issues around bias and how it can impact
product decisions unconsciously with far-reaching consequences,
citing a 2021 MBRRACE-UK study showing Black women are four
times more likely to die in childbirth. Participants suggested
moving away from default skin colour to allow users to select
pigmentation from a colour wheel rather than a set order.
Legal
LexisNexis Legal & Professional advances SDG 16 (Peace, Justice
and Strong Institutions) through its products and services which
promote the rule of law.
In response to the Covid-19 pandemic and subsequent lockdowns,
LexisNexis Legal & Professional South Africa has continued to
support access to justice through an electronic court system; it
previously provided courts across the country with Wi-Fi
connectivity to ensure the optimal functionality of a digital system.
In the year, LexisNexis PatentSight, an intellectual property
analytics solution, mapped the global patent system to the
SDGs. This new, objective measure gives organisations a view
of the global innovation landscape. It reveals opportunities in
sustainable technology to support R&D investment strategies,
including effective evaluation.
In 2021, we ran Rule of Law Cafes in the UK, the Philippines,
Malaysia, and South Africa. The Philippines Rule of Law Café,
held virtually in July, addressed the digitisation of the courts with
speakers Justice Marquez from the Philippine Supreme Court;
Judge Rainelda H. Estacio-Montesa; Attorney Marlon Valderama
and Attorney Jed Sherwin G. Uy.
In the year, LexisNexis Legal & Professional launched a fellowship
programme as part of its commitment to eliminate systemic
racism in legal systems and further enhance the company’s culture
of inclusion and diversity. The $120,000 initiative has been created
in partnership with the Historically Black Colleges and Universities
Law School Consortium and the inaugural cohort includes 12
students from the consortium’s six law schools. Each Fellow
was awarded tuition support and spent nine months engaging
in leadership skills training to help accelerate their careers.
The International Bar Association (IBA) and the LexisNexis Rule of
Law Foundation are collaborating on an ambitious, first of its kind
long-term research project to identify disparity in representation
between men and women at senior levels in the legal profession
on a global scale. The Gender Project, launched in March 2021, will
provide a blueprint for achieving gender parity in law leadership
by 2030.
LexisNexis Legal & Professional also partners with the IBA on
the eyeWitness to Atrocities App, which assists human rights
defenders in documenting and reporting human rights abuses
in a secure and verifiable way so information can be used as
court evidence; the App is available to all Android users and
has collected more than 15,000 photos and videos to date.
Exhibitions
RX’s events strengthen communities and support the SDGs,
including SDG 11 (Sustainable Cities and Communities) and SDG 10
(Reduced Inequalities). In the year, RX released the second part
of a White Paper on Covid-19 and how it has affected the event
industry. The study found for the first time since it began in June
2020, more visitors and exhibitors believed the economic outlook
in their industry will improve than believed it will deteriorate.
Customers were also more buoyant about their ability to survive
the economic impact of the pandemic. They continued to embrace
online learning, with attendees becoming more discerning in
theirchoice of events, preferring shorter, more highly focused
and interactive formats incorporating roundtables, chat rooms
and Q&A sessions.
RELX Annual report and financial statements 2021 | Corporate responsibility overviewMarket segmentsGovernanceFinancial statements and other informationFinancial reviewCorporate ResponsibilityOverview 44
In January 2021, RX Global pledged $1 million over the next five
years to selected not-for-profit organisations around the world
committed to promoting racial equality. Nine organisations in
Brazil, South Africa, UK and the US will share the fund, including
the Adus Instituto, which works with refugees and other victims
of forced migration in São Paulo, Brazil, and Ally2Action, a US
charity accelerating racial reconciliation.
At the 2021 MIPTV television market, RX France presented its
second annual MIP SDG Award which honours media companies
for their contribution to delivering the SDGs. The 2021 award was
dedicated to Goal 10 (Reduced Inequalities) and was awarded to
A+E Networks for their long-standing commitment to equality,
justice, inclusion and diversity. The event features the MIPCOM
Diversify TV Excellence Awards, now in its fifth year, to honour
the most compelling creators, characters and stories promoting
diversity and inclusion on-screen. Among them were Shine True, by
Vice Studios, a series of documentaries which celebrates the trans
and gender non-conforming community and The Money Maker, by
Kalel Productions, featuring Black investor Eric Collins who offers
his expertise and investment to support struggling businesses.
In the lead up to the COP26 climate change meeting, RX organised
the Dcarbonise Week Virtual Summit. This free to attend series
of online events provided knowledge, inspiration and advice to
attendees on lowering their carbon impact with themes covering
low carbon energy, agriculture and sustainable tourism. In the
year, RX partnered with peers and industry bodies UFI and JMIC
to launch a net zero carbon pledge for the events industry.
It commits RX to a 50% reduction in total global greenhouse
gas emissions by 2030.
Across RELX
Recognising that across RELX we have products, services, tools
and events that advance the UN’s 17 SDGs, we created the free
RELX SDG Resource Centre in 2017 to advance awareness,
knowledge and implementation, with over 130,000 users in 2021.
We also curated special issues to mark 12 UN international days,
such as World Environment Day, World Water Day, International
Women’s Day and the International Day for the Elimination of
Racial Discrimination. Since 2017, we have made over 1,000
journal articles and book chapters free to access via the RELX
SDG Resource Centre which would have otherwise cost over
£2 million to make open access.
We also held the seventh RELX SDG Inspiration Day, which took
place virtually on 22 June 2021 and was hosted by Dr Shola
Mos-Shogbamimu, a lawyer, political and women’s rights activist,
and founder of the publication, Women in Leadership. The keynote
speech was delivered by Nobel Laureate Professor Muhammad
Yunus, who founded the idea of microcredit and the Grameen
Bank. 350+ participants from business, the investor community,
academia, not-for-profit organisations and civil society took part
in sessions throughout the day.
2021 marked the eleventh year of the RELX Environmental
Challenge, focused on improved and sustainable access to
water and sanitation where it is presently at risk. A shortlist of
seven projects were chosen from more than 160 applications.
The $50,000 first prize winner was Green Empowerment, a US
charity operating in Latin America, Southeast Asia and Africa.
The project addresses the challenge of reliable water treatment
in low-resource communities through the use of data to deliver
a robust, autonomous, sensor-based Chlorine Management
System. The system uses water quality ranges specific to the
community’s water source to develop a predictive algorithm for
effective water chlorination. The $25,000 second prize winner
was Mosan, an international social enterprise offering circular,
off-grid dry sanitation services for densely populated settlements.
The sanitation system features an in-home toilet designed to a
high specification. A community-led model and strong role for
users will help operation and maintenance costs to remain low.
In the year, past winners CAWST, AIDFI and Sanergy – recipients
of the 2020 tenth anniversary collaboration prize – delivered
online training and outreach during the pandemic to water and
sanitation networks and practitioners across Africa and Colombia.
2021 OBJECTIVES
Protection of society:
Meaningful support of
SDG 16 (Peace, Justice
and Strong Institutions) by
expanding reach of ADAM,
LexisNexis Risk Solution’s
US missing children alert
service, through new
partnerships and mobile
text alerts; help deliver
new missing alert service
for UK’s Missing People
Protection of society:
Meaningful support of SDG
10 (Reduced Inequalities)
by expanding financial
inclusion pilots in low-
income countries; use of
products and services to
reduce online fraud and
identity theft
Advance of science and
health: Meaningful support
of SDG 3 (Good Health and
Well-being) and SDG 10
(Reduced Inequalities)
to increase scientific
knowledge, reduce health
disparities and ensure
equal access to health,
including through a project
with the Julius L. Chambers
Biomedical Biotechnology
Research Institute
Achievement
§ Over 2,200 new subscribers
in 2021; partnership with US
national media network GST to
display ADAM alerts on digital
screens at 26,000 US road
service stations; 1.7 million
alerts disseminated in over
1,800 missing children cases;
project underway scoping
technical support to improve
UK Missing People’s automated
missing person alert service
§ Using LNRS alternative credit
sources, to help more citizens
gain access to credit in 2021,
two pilots were extended in
Colombia and three new pilots
were launched in Mexico; US
Department of Labor and US
states including Maryland
and Ohio use LexisNexis Risk
Solutions tools in the year to
fight unemployment fraud
§ Elsevier collaboration with the
Julius L. Chambers Biomedical
Biotechnology Research
Institute included support for
community rollout of Covid-19
vaccine training for 10 faculty
in evidence -based
implementation science, and
the development of a course
for undergraduates
§ Leap project with Amref helped
train cohort of 35,000 health
workers, as part of Ethiopian
government’s Covid-19
prevention and treatment
programme
RELX Annual report and financial statements 2021 | Corporate responsibility 45
1. Our unique contributions (continued)
2021 OBJECTIVES
Promotion of the rule of
law and access to justice:
Meaningful support of
SDG 16 (Peace, Justice and
Strong Institutions) through
continued expansion of Rule
of Law Cafes; LexisNexis
Rule of Law Foundation
efforts to eliminate racism
in legal systems; and support
for UN Global Compact
initiatives to advance SDG 16
Achievement
§ Rule of Law Cafes held in
Philippines, Malaysia,
South Africa and the UK; new
fellowship programme with
Historically Black Colleges
and Universities Law School
Consortium; supported UNGC
SDG 16 Business Framework
focused on transformational
governance to help businesses
understand and implement
SDG 16 targets
Fostering communities:
Meaningful support of
SDG 11 (Sustainable
Cities and Communities)
including a focus on
zero carbon through key
shows in alignment with
COP 26; increased online
show offerings to support
exhibitors and attendees in
the wake of Covid-19
Universal, sustainable
access to information:
Advance the SDGs by
expanding free RELX SDG
Resource Centre including
by releasing six special
releases; developing new
partnerships; and holding
a 2021 global SDG
Inspiration Day
§ Conducted mapping of more
than 200 RX events which
indicated more than 90%
covered SDG themes including
SDG 11; pre-COP26 All-Energy
Dcarbonise Week Virtual
Sustainability Summit to help
attendees accelerate strategies
and actions to achieve net zero;
partnered with peers and
industry bodies to launch
Net Zero Carbon Events
§ Content on the RELX SDG
Resource Centre expanded by
62% over 2020 including with
features for 12 UN days; 2021
RELX SDG Inspiration Day with
350+ participants and keynote
presentations by former UN
Secretary General Ban Ki-Moon
and Nobel Peace Prize Laureate
Muhammad Yunus
2022 OBJECTIVES
§ Protection of society: Meaningful support of SDG 10
(Reduced Inequalities) by expanding financial inclusion
pilots in low-income countries; use of products and
services to reduce online fraud and identity theft
§ Advance of science and health: Meaningful support of
SDG 3 (Good Health and Well-being) and SDG 10 (Reduced
Inequalities) by championing inclusive health and research
through global partnerships, including a project with the
Sansum Diabetes Research Institute’s Latino community
scientists, and engagement with the Black Women’s Health
Alliance to improve health care outcomes and reduce health
disparities for African American and other minority women
and families in Philadelphia
§ Promotion of the rule of law and access to justice:
Meaningful support of SDG 16 (Peace, Justice and Strong
Institutions) through advancing legislative review project
with the UK National Crime Agency and the International
Centre for Missing and Exploited Children on child sexual
abuse reporting and data sharing across nine countries
§ Fostering communities: Meaningful support of SDG 11
(Sustainable Cities And Communities) including a focus
on show content supporting net zero and the transition
to a low carbon economy
§ Universal, sustainable access to information: Advance
the SDGs by increasing the number of research articles
available on the RELX SDG Resource Centre
OUR 2030 VISION*
Use our products and expertise to advance the SDGs,
among them:
§ SDG 3: Good Health and Well-being
§ SDG 10: Reduced Inequalities
§ SDG 13: Climate Action
§ SDG 16: Peace, Justice and Strong Institutions
Enrich the SDG Resource Centre to ensure essential content,
tools and events on the SDGs are freely available to all
* 2030 is the deadline for the UN’s Sustainable Development Goals; we aim to do our
part towards their achievement.
RELX Annual report and financial statements 2021 | Corporate responsibility overviewMarket segmentsGovernanceFinancial statements and other informationFinancial reviewCorporate ResponsibilityOverview 46
2. Governance
Our Board recognises the importance of maintaining high
standards of corporate governance, which underpins our ability
to deliver consistent financial performance and value to our
stakeholders. It is consistent with our wider RELX culture of acting
with integrity in all that we do. The 2018 UK Corporate Governance
Code (UK Code) applied to RELX PLC during the year. The Board
continued to review the Company’s compliance with the principles
and provisions of the UK Code, focusing particularly on RELX’s
approach to engaging with its key stakeholders, particularly in
light of the Covid-19 pandemic, alongside its ongoing review of
RELX’s culture, purpose, strategy and values.
RELX PLC is the sole parent company of the Group. It owns 100%
of the shares in RELX Group plc which, in turn, holds all of the
operating businesses, subsidiaries and financing activities of the
Group. RELX PLC, its subsidiaries, associates and joint ventures
are together known as RELX.
The shares of RELX PLC are traded through its primary listing on
the London Stock Exchange and its secondary listing on Euronext
Amsterdam, while its securities are also traded on the New York
Stock Exchange under its American Depositary Share Programme.
Accordingly, the Board has implemented standards of corporate
governance and disclosure applicable to a UK incorporated
company, with listings in London, Amsterdam and New York.
Information and documents detailing our governance procedures
are available to stakeholders online at www.relx.com. The RELX
financial statements are prepared in accordance with International
Financial Reporting Standards.
The RELX Operating and Governance Principles provide a
framework of processes, policies, and controls to manage risk.
The RELX Code of Ethics and Business Conduct (the Code) sets
the standards for behaviour for all employees of RELX. Among
other key issues, the Code addresses fair competition, anti-bribery,
conflicts of interest, employment practices, data protection and
appropriate use of company property and information. It also
encourages reporting of violations – with an anonymous
reporting option where legally permissible – and prohibits
retaliation against anyone for reporting a violation they
honestly believe may have occurred.
We maintain a comprehensive set of compliance policies and
procedures in support of the Code reviewed at least annually
to ensure they remain current and effective. Our policies and
procedures help us comply with the law and conduct our business
in an open, honest, ethical and principled way. They comprise
part of our anti-bribery adequate procedures for compliance
with applicable laws.
Employees receive mandatory training on the Code – both as new
hires and regularly throughout their employment – on topics such
as maintaining a respectful workplace, preventing bribery and
anti-competitive behaviour, and protecting personal and company
data. Mandatory periodic training covers key Code topics in depth
and is supplemented by advanced in-person training for higher
risk roles.
We offer employees a confidential reporting line, managed by
an independent third party, accessible by telephone or online
24 hours a day, 365 days a year (as allowed under applicable
law, employees may submit reports to the confidential line
anonymously). Reports of violations of the Code or related
policies are promptly investigated, with careful tracking and
monitoring of violations and related mitigation and remediation
efforts by Compliance teams across the business.
We remained diligent in our ongoing efforts to comply with
applicable bribery and sanctions laws and mitigate risks in
these areas. Our anti-bribery and sanctions programme includes
testing and monitoring of compliance with detailed, risk-based
internal policies and procedures on topics such as doing business
with government officials, gift and entertainment limits, gift
registers and complex sanctions requirements. Relationships
with third parties and acquisition targets are evaluated for risk
using questionnaires, references, detailed electronic searches,
and ‘Know Your Customer’ screening tools. We monitor and
assess the implementation of our anti-bribery and sanctions
programmes by continually reviewing and updating our policies
and procedures; conducting periodic programmatic risk
assessments, quality reviews and internal monitoring
and audits of the programme’s operational aspects.
We held a Compliance Week in November with videos, emails,
articles and a quiz. During the Week we also introduced an Integrity
Hall of Fame to recognise employees who demonstrated
outstanding conduct and commitment to the company’s Do the
Right Thing principles focused on respecting one another,
incorporating ethics into actions; growing our business with
integrity; and holding ourselves accountable.
As a signatory to the UNGC, we embed its principles, encompassing
human rights, labour, environment and anti-corruption in key
policies including our Code and our Supplier Code. As a signatory
to the UNGC, we embed its principles, encompassing human
rights, labour, environment and anti-corruption in key policies
including our Code and our Supplier Code. During the year, we
demonstrated leadership by maintaining our LEAD status, one of
38 companies among approximately 12,000 corporate signatories.
We were part of the UNGC Expert Network and contributed to
key UNGC SDG working groups on SDG 8, Decent Work in Global
Supply Chains, and SDG 16, Peace, Justice and Strong Institutions.
We served on the board of UNGC network in the UK, where our
global head of CR and ERG is Chair. We produced an annual
Communication on Progress report, required of signatories
annually, attaining the Advanced Level and also shared our
expertise by speaking at UNGC programmes on issues such
as inclusion and climate change, including during COP26.
The Code supports the principles of the UNGC and stresses our
commitment to human rights. In accordance with the UN’s Guiding
Principles on Business and Human Rights, we have considered
where and how we operate to ensure we uphold human rights.
In 2021, we updated our Modern Slavery Act Statement, available
from the RELX homepage, which states how we are working to
avoid human trafficking and modern slavery in our direct
operations and in our supply chain.
RELX Annual report and financial statements 2021 | Corporate responsibility 47
Our Net Zero
Commitment
In 2021, we reaffirmed our commitment to climate action by signing The Climate
Pledge to become net zero by no later than 2040. The Climate Pledge is a
community of more than 200 companies and organisations, working together
to address the climate crisis. In signing the pledge, we will measure and report
greenhouse gas emissions, implement decarbonisation strategies for emissions
reductions and neutralise remaining emissions with high quality offsets.
70%
decrease in our operational
carbon emissions between
2010 and 2021
Residual emissions were
offset through the purchase
of verified credits from
REDD+ forest projects
Following a 64% reduction in our Scope 1 and 2
location-based carbon emissions between 2010-2020,
we set new environment targets. We used the
Science Based Target initiative methodology to set
a 2020-2025 (2015 baseline) target to reduce Scope 1
and Scope 2 location-based carbon emissions by
46%. This aligns with the 1.5°C goal of the Paris
Climate Agreement. To get there, we will reduce
greenhouse gas emissions and charge an internal
carbon price, among other measures.
For Scope 1, Scope 2 and Scope 3 (work-related
flights, cloud computing, home-based working
and commuting) we were net zero in 2021. For the
emissions we offset, we have invested in REDD+
forestry projects in Kenya and Brazil.
According to Lisa Bowling, RELX’s Chief Procurement
Officer, “All RELX businesses have contributed to the
reductions in our Scope 1 and Scope 2 emissions.
While we will continue to target further reductions in
our own emissions, we will broaden our approach by
asking our suppliers to help reach our Climate Pledge
Commitments through achieving emissions
reductions across our supply chain.”
To limit climate change
to 1.5°C, business must
play a significant role.
By making a commitment
to net zero through The
Climate Pledge, we aim
to do our part, tackling
climate change through
our own operations and
engagement with our
suppliers, customers
and other stakeholders.
Nick Luff
Chief Financial Officer,
RELX
RELX Annual report and financial statements 2021 | Corporate responsibility overviewCorporate ResponsibilityMarket segmentsOverviewGovernanceFinancial statements and other informationFinancial review 48
As a company focused on knowledge and analytics, each year
we are in possession of large amounts of data. It is therefore
incumbent on RELX to ensure that we provide our customers
and our people with the highest levels of data privacy and
security as described in our Privacy Principles available at:
https://www.relx.com/corporate-responsibility/being-a-
responsible-business/privacy-principles. We continually monitor
our procedures and systems to meet this requirement, ensuring
adherence with all relevant laws where we do business around
the world. Dedicated privacy teams implement requirements for
compliance with emerging data protection regulations as well.
In the year, RELX Compliance completed a privacy quality review
focused on the effectiveness of safeguards intended to mitigate
the risk of non-compliance with the European Commission
requirements for cross-border transfer of personal data
originating in the European Economic Area.
In 2021, we continued efforts to increase the resilience of the
company to attacks aimed at our users. We ran monthly phishing
simulations for all employees, with results significantly better
than the corresponding industry benchmarks. Using advanced
technology controls, we blocked approximately 40 million unwanted
emails in just one month from our users, including 5.9 million
phishing attacks and 65,000 detection resistant attacks. We
continued to communicate with employees about avoiding fraud
during International Fraud Awareness Week and also recognised
Cyber Security Awareness Month with a host of internal and
external activities across operating divisions. We ran our fourth
Great Phishing Challenge (and provided it as a service to the Texas
Department of Public Safety for their awareness efforts). More
than 1,750 employees used the opportunity to show off their skills
in detecting suspicious emails.
Globally, in 2021, RELX paid £342m in corporate taxes. We are a
responsible corporate taxpayer and conduct our tax affairs to
ensure compliance with all laws and relevant regulations in the
countries in which we operate. Tax is an important issue for our
stakeholders and society at large. We have set out our approach to
tax in our global tax strategy. This incorporates our Tax Principles
along with additional disclosures about where we pay taxes and
our broader contribution to society, available at: www.relx.com/
go/TaxPrinciples.
In the year, we continued a pilot project to make tax law more
transparent to both governments and citizens in Africa.
The Statement of Investment Principles for the Reed Elsevier
UK pension scheme indicates that environmental, social or
governance issues that may have a financial impact on the
portfolio or a detrimental effect on the strength of the employer
covenant, are taken into account when making investment
decisions. CR issues are also relevant to other investment
decisions we make.
Achievement
§ Monthly phishing simulations with
results outperforming industry
benchmarks; Fraud Awareness
Week and Cyber Security Month
activities to engage colleagues on
data privacy and security
§ Completed privacy quality review
focused on the effectiveness of
safeguards intended to mitigate the
risk of non-compliance with the
European Commission
requirements for the cross-border
transfer of personal data originating
in the European Economic Area
§ Progressed project to make tax law
more transparent to both
governments and citizens in Africa
2021 OBJECTIVES
Security – SDG 16
(Peace, Justice and
Strong Institutions):
Continue to implement
controls to increase
resilience to user-
based attacks
such as phishing
and ransomware;
introduce a Great
Phishing Challenge for
internal and external
stakeholders
Privacy – SDG 16
(Peace, Justice and
Strong Institutions):
Conduct a 2021 privacy
quality review on
compliance with EU and
other requirements
for cross-border data
transfers
Responsible tax – SDG
16 (Peace, Justice and
Strong Institutions):
Continue to advance
African tax law
codification in pilot
countries, working with
LexisNexis South Africa
and LexisNexis Rule of
Law Foundation
2022 OBJECTIVES
§ Security – SDG 16 (Peace, Justice and Strong Institutions):
Expand National Institute of Standards and Technology
Cybersecurity Framework assessment reporting
§ Privacy – SDG 16 (Peace, Justice and Strong Institutions):
Global activities for employees to raise awareness of data
privacy and protection, including for Data Privacy Day
§ Responsible tax – SDG 16 (Peace, Justice and Strong
Institutions): Continue to advance African tax law
codification pilots
OUR 2030 VISION
Continued progressive actions that advance excellence in
corporate governance within our business and the marketplace
RELX Annual report and financial statements 2021 | Corporate responsibility 49
3. People
Our over 33,000 people are our strength. Our workforce is 50%
women and 50% men, with an average length of service of 8 years.
There were 44% women and 56% men managers, and 33% women
and 67% men senior leaders.
Board of Directors
Senior leaders*
All employees**
Women
45%
33%
5
201
6
415
16,632
50% 16,368
Men
55%
67%
50%
As defined by our internal job architecture
*
** Full-time equivalent.
At year-end 2021, women made up 45% of the Board. One member,
in line with the UK Parker Review, is from a minority ethnic
background. The two executive directors on the Board are men.
The Nominations Committee considers the knowledge,
experience and background of individual Board directors.
At year end, 18% of RELX senior executives were from ethnic
minority backgrounds. 26% of all employees in the US and UK
were from ethnic minority backgrounds.
Our Inclusion Council, which includes the heads of Inclusion
and Diversity (I&D) for each of our businesses, helps us set our
inclusion and diversity strategy and track its implementation,
supported by an Inclusion Working Group with nearly 300
participants. The RELX strategy team host an I&D Data Steering
Committee to understand trends in our diversity data.
In 2021, we advanced the RELX Inclusion Goals which aim to
ensure an inclusive workplace; increase the representation of
women and ethnic minorities in management and senior
leadership positions; and improve our workforce data by enabling
people to voluntarily disclose their sexual orientation and
disability. Among the focus of our efforts is training for employees
on critical issues such as unconscious bias, courageous
conversations, psychological safety, and avoiding harassment.
We also maintain mentoring programmes for senior women
talent. We are signatories to the Women’s Empowerment
Principles Target Gender Equality initiative; the Race at Work
Charter; and the Valuable 500, which promotes workplace
disability inclusion.
RELX was a 2021 Bloomberg Gender Equality Index constituent and
was included in the top 25 for gender equality in the Netherlands as
ranked by Equileap.
Our Employee Resource Groups (ERGs) grew to over 100 networks
in the year, encompassing African ancestry, gender balance, pride
and disability, to facilitate support, mentoring and community
involvement. To celebrate Diversity Awareness Month in October,
we held our third inclusion and diversity conference, RISE, with
more than 1,100 attendees and 20 hours of programming to allow
involvement of colleagues across multiple time zones. Sessions
covered professional development, inclusive leadership and ERG
engagement, as well as a panel with the CEOs of our four
businesses led by our Chief Strategy Officer.
We comply with employee-related reporting requirements and, in
2021, our business areas published UK gender pay gap reports as
part of UK legislation. These can be found here: https://www.relx.
com/corporate-responsibility/engaging-others/policies-and-
downloads/local-reporting-requirements. We invest in research
to identify causes of pay differences and regularly evaluate our
policies and processes to ensure they are aligned to our inclusion
strategy. We commit to building a robust framework for monitoring
pay equity. We conducted living wage assessments in France,
India and the Philippines. Our assessments in the US are ongoing
with continued engagement with external stakeholders including
BSR, the UN Global Compact and Living Wage for US.
In 2021, our workforce comprised 96% full time employees. 1% of
all employees were temporary workers and over 1,000 were
contingent workers. We estimate the total hours worked to be
approximately 52m hours in the year. Our total turnover rate was
15.8%; the voluntary turnover rate was 12.5% and the involuntary
rate was 3.3%
We operate a number of stock programmes for employees
including options, restricted stock and performance stock units.
For senior colleagues, these are based on annual allocations
of stock – the vesting of which may be service-based or related
to company performance. We also offer all employee stock
programmes in which employees may elect to participate in
certain markets, for example Sharesave in the UK. These
incentive programmes are available to approximately 20% of
our employees. Targets associated with CR performance are
embedded within our annual incentive framework, including
for the CEO and CFO, to progress our annual and multi-year
CR objectives.
Our employees have the right to a healthy and safe workplace, as
outlined in our Global Health and Safety Policy. We concentrate
on areas of greatest risk, for example warehouses, events and
exhibitions. As a primarily office-based company, we also focus
on manual handling, slips, trips and falls. To reduce our severity
rate (lost days per 200,000 hours worked), we conduct risk
assessments and work with a third party in the US to assign a
nurse case manager to each complex or severe claim. There
were 2 lost time incidents in the year.
During the year a significant number of employees continued to
work from home in response to the global pandemic. Now more
than ever, the physical and mental health of our employees is a
top priority. We have dedicated health and wellbeing resources
available to employees across all business areas and we maintain
a network of more than 100 wellbeing champions. In the year, we
progressed a Mental Health Policy to ensure a healthy culture with
emphasis on positive wellbeing.
In the year, we conducted our most recent global employee opinion
survey, with consistent questions to allow us to track performance.
Employee engagement increased 13 points to 68% compared to
the last company-wide survey three years earlier. Over the three
year period, we conducted pulse surveys to understand and
respond to employees’ current experience.
RELX Annual report and financial statements 2021 | Corporate responsibility overviewMarket segmentsGovernanceFinancial statements and other informationFinancial reviewCorporate ResponsibilityOverview 50
Achievement
§ Robust governance structure to
monitor progress against the RELX
inclusion goals and to track trends
in diversity data; Rise conference
attended by 1,100+ colleagues to
mark diversity awareness month;
training for employees including on
psychological safety and avoiding
harassment with mentoring
programmes for senior women
talent
§ Living wage assessments
completed in France, India and the
Philippines; US living wage
assessments and accreditation
ongoing including with Living Wage
for US
§ Progressed RELX Mental Health
Policy
2021 OBJECTIVES
Inclusion – SDG 10
(Reduced Inequalities):
Progress RELX
inclusion goals through
focused recruitment,
training and
development efforts
Pay equity – SDG 8
(Decent Work and
Economic Growth):
Continue living wage
assessment in four
countries
Well-being – SDG
3 (Good Health and
Well-Being): Develop
RELX mental health
policy reflecting cross-
business and external
insights
We are committed to improving access to our products and
services for all users, regardless of physical ability. Our
Accessibility Policy aims to lead the industry in providing
accessibility solutions to customers, with products that are
operable, understandable and robust. In 2021, members of the
Accessibility Working Group logged over 150 accessibility projects
and Elsevier’s Global Books Digital Archive fulfilled more than
3,200 disability requests, 92% of them through AccessText.org, a
service we helped establish. We also developed the Accessibility
Maturity Model, a tool to define and assess accessibility best
practice and implementation across the group.
In the year, we celebrated the third RELX Accessibility Leadership
Awards to showcase employees who demonstrate exceptional
leadership in advancing accessibility. The winners of the 2021
Leadership Awards were Elsevier’s Stefan Kuip for his creative
approach in applying accessibility standards to strategic products,
and LexisNexis L&P’s David Lovell for accessibility guidance and
stakeholder engagement throughout the coding process.
In 2021, Proagrica, part of LexisNexis Risk Solutions, launched a
new version of their Sirrus app, which works with or without
internet connectivity, to enable agronomists and farmers to work
together digitally to develop planting, fertiliser, soil sampling, crop
protection and tillage recommendations – collaboration that
facilitates quick responses to emerging risks.
2022 OBJECTIVES
§ Inclusion – SDG 10 (Reduced Inequalities): Progress RELX
inclusion goals, including piloting voluntary disclosures for
gender identity, sexual orientation and disability
§ Pay equity – SDG 8 (Decent Work and Economic Growth):
Advance reward education for people managers
encompassing pay equity; cascade newly developed
on-demand, reward eLearning modules to managers for real
time access
§ Well-being – SDG 3 (Good Health and Well-Being): Review
safety risk assessment and training modules to cover three
working models – office, home and hybrid
OUR 2030 VISION
§ Continued high-performing and satisfied workforce through
talent development, I&D and wellbeing; scale support for
external human capital initiatives
4. Customers
Listening to our customers allows us to deepen our understanding
of their needs and drive improvements. In the year, with input from
the customer insight leads across our business, we calculated a
RELX-wide customer satisfaction metric showing that in 2021,
82.9% of customers would recommend RELX businesses.
In 2021, we continued the RELX SDG Customer Awards to
recognise the exceptional efforts of our customers who share
RELX’s ambition to advance the SDGs; winners were Danish
renewable energy provider Ørsted, nominated by LexisNexis Risk
Solutions; the University of São Paulo, Brazil nominated by
Elsevier; the International Commission of Jurists, nominated by
LexisNexis Legal & Professional and A+E Networks, an American
multinational broadcasting company, nominated by RX.
2021 OBJECTIVES
Customer engagement
– SDG 17 (Partnerships
For The Goals): Further
engagement with
customers on the SDGs
Quality – SDG 8 (Decent
Work and Economic
Growth): Create new
internal customer
quality assurance
network
Accessibility – SDG 10
(Reduced Inequalities):
Advance Accessibility
Maturity Model across
RELX
Achievement
§ SDG Customer Awards at 2021
RELX SDG Inspiration Day
§ Quality First Principles Working
group and Editorial Standards
Working Group merged into cross
functional group for standards and
quality
§ Convened quarterly Accessibility
and Inclusion Forum to advance
RELX Accessibility Maturity Model in
areas such as employee training;
policy, governance and reporting;
inclusive design; and project
management
2022 OBJECTIVES
§ Customer engagement – SDG 17 (Partnerships For The
Goals): Create tools to enable customer-facing staff to share
information about RELX and CR
§ Quality – SDG 8 (Decent Work and Economic Growth): Publish
and launch RELX Responsible Artificial Intelligence Principles
§ Accessibility – SDG 10 (Reduced Inequalities): Advance
cross-business, on-demand accessibility training
OUR 2030 VISION
Continue to expand customer base across our four business
areas through excellence in products and services, active
listening and engagement, editorial and quality standards, and
accessibility; a recognised advocate for ethical marketplace
practice
RELX Annual report and financial statements 2021 | Corporate responsibility 5. Community
RELX Cares, our global community programme, supports
employee volunteering and giving that makes a positive impact on
society. In addition to local initiatives of importance to employees,
the programme’s core focus is on education for disadvantaged
young people that advances one or more of our unique
contributions as a business. Since the onset of the Covid-19
pandemic, colleagues from around the world have come together
to support their local and international communities through
volunteerism and fundraising activities.
Staff have up to two days paid leave per year for their own
community work. We donated £5.5m in cash (including
through matching gifts) and the equivalent of £15.1m in products,
services and staff time in 2021. Globally, 32% of employees were
engaged in volunteering through RELX Cares. A network of
over 220 RELX Cares Champions ensures the vibrancy of our
community engagement.
In 2021 we reached our target to raise $120,000 to support
global fundraising partner, Hope and Homes for Children (HHC),
which aims to ensure children grow up in families rather than
institutions. Colleagues are now working to raise an additional
$15,000 to support their efforts in Moldova to integrate
hearing-impaired children into mainstream education through
speech therapy, quality hearing aids, support for parents and
teacher training. Disability is a factor in children not remaining in
a family setting in the country, with three institutions for children
with hearing impairments. To date, RELX have funded 700
rehabilitation sessions for 49 children with hearing impairments
and have enabled Hope and Homes for Children to work directly
with 33 schools and kindergartens to create a quality education
framework for children with sensory disabilities so they no longer
have to live in fear of separation.
Each September, we hold RELX Cares Month to celebrate our
community engagement. During the month, we held the eleventh
Recognising Those Who Care Awards to highlight exceptional
contributors to RELX Cares. This year we once again celebrated
RELX employees who have shown an outstanding response to
supporting their communities in the wake of the Covid-19
pandemic. Three individuals and three teams won donations for
their chosen charities. In addition, we gave special recognition
awards to LexisNexis Risk Solutions colleagues who collaborated
on the song Times Like These, with more than 16,000 views during
the year to benefit RELX’s global fundraising partnership with
Hope and Homes for Children.
In 2021, we contributed over 182,000 books to Book Aid
International and Books for Africa worth over $12.4 million.
51
Achievement
§ More than 1,450 colleagues
participated in survey to identify
barriers to volunteering; virtual
volunteering a focus for global RELX
Cares Month, with a related film for
all employees
§ Moved to once per year central
donations round to facilitate better
impact reporting by beneficiaries
2021 OBJECTIVES
Employee community
engagement – SDG 17
(Partnerships For The
Goals): Evaluate the
impact of the pandemic
on community
engagement;
campaign to promote
virtual volunteering
Philanthropic giving –
SDG 17 (Partnerships
For The Goals): Update
central donations
programme in order to
better report impact of
community giving
2022 OBJECTIVES
§ Employee community engagement – SDG 17 (Partnerships
For The Goals): Continue to improve impact measurement of
our charitable donations
§ Philanthropic giving – SDG 17 (Partnerships For The Goals):
Establish new strategic global fundraising partnership
OUR 2030 VISION
Through our unique contributions, significant, measurable
advancement of education for disadvantaged young people;
investments with partners for maximum impact
6. Supply chain
We have a Socially Responsible Supplier (SRS) programme
encompassing all our businesses, supported by colleagues with
expertise in operations and procurement and a dedicated SRS
Director from our global procurement function.
We have a comprehensive Supplier Code of Conduct (Supplier
Code) available in 16 languages, which we ask suppliers to sign and
display prominently in the workplace. It commits them to following
applicable laws and best practice in areas such as human rights,
labour and the environment. It also asks suppliers to require the
same standards in their supply chains, including requesting
subcontractors to enter into a written commitment to uphold the
Supplier Code. The Supplier Code states that where local industry
standards are higher than applicable legal requirements, we
expect suppliers to meet the higher standards. Our SRS
programme is a key aspect of our efforts to prevent modern
slavery and human trafficking in our supply chain.
Through our SRS database, we track suppliers with whom we
spend >$1m annually, suppliers identified as critical by the
business, and those located in medium- and high-risk locations, as
designated by a tool we developed with Carnstone, with a spend of
>$200K for a consecutive two-year period. The tool incorporates 11
indicators, including human trafficking information from the US
State Department and Environmental Performance Index results
produced by Yale University and Columbia University in
collaboration with the World Economic Forum.
RELX Annual report and financial statements 2021 | Corporate responsibility overviewMarket segmentsGovernanceFinancial statements and other informationFinancial reviewCorporate ResponsibilityOverview 52
The tracking list changes year-on-year based on the suppliers we
engage to meet the needs of our business. In 2021, there were 359
suppliers on the SRS tracking list, of which 44 are operating in
high-risk locations and 50 in medium-risk locations. At year end,
96% of suppliers on the tracking list were signatories to our
Supplier Code. We continue to work with non-signatories to gain
agreement to our Code, and/or assess whether they have
equivalent standards in place, in order to ultimately decide
whether to continue doing business with them. We have embedded
the Supplier Code into our sourcing processes and have a total of
3,670 suppliers who agreed to the Supplier Code in 2021, up from
3,457 in 2020.
We engage a specialist supply chain auditor who undertook 111
external audits on our behalf in 2021: 28 onsite and virtual onsite
audits and 83 desktop audits. During a desktop audit, the supplier
responds to an online questionnaire and uploads relevant
supporting documents followed by a third-party auditor review.
The virtual onsite audits require a supplier representative wearing
a video and audio source located in a light-weight harness to allow
remote interaction with an external auditor. The auditor then
evaluates the facility, conducts interviews, and reviews the
necessary documentation in real time, just as they would if
conducting an in-person audit.
Incidence of non-compliance triggers continuous improvement
reports summarising audit results, with agreed remediation plans
and submission dates.
We are committed to proactive engagement with suppliers to
ensure our supply chain reflects the diversity of our communities.
In the year, we continued to focus on our US supplier diversity
programme. In 2021, 3.1% of our US spend, representing over
$60m, was with veteran, minority or women-owned businesses.
In total, including spend with small businesses, 12.9% of US spend
was with diverse suppliers.
2021 OBJECTIVES
Responsible Supply
Chain – SDG 8 (Decent
Work and Economic
Growth): Increase
number of suppliers
as Code signatories;
continue using audits
to ensure continuous
improvement in
supplier performance
and compliance
Supplier Diversity
– SDG 10 (Reduced
Inequalities):
Advance Supplier
Diversity and Inclusion
programme
Achievement
§ 99% core suppliers* (target 95%)
§ 100% high- and medium-risk core
suppliers (target 100%)
§ 96% total tracking list (target 88%)
§ 3,670 total Code signatories (3,457
in 2020, 2021 target 3,600)
§ 111 independent audits completed
(99 in 2020)
§ 12.9% diversity spend (US rolling
four quarters) with Veteran,
Minority, Woman-owned, and Small
Businesses
* Core suppliers are those that have appeared on the SRS tracking list for three or
more years.
2022 OBJECTIVES
§ Responsible Supply Chain – SDG 8 (Decent Work and
Economic Growth): Increase number of suppliers as Code
signatories; continue using audits to ensure continuous
improvement in supplier performance and compliance
§ Supplier Diversity – SDG 10 (Reduced Inequalities): Advance
Supplier Diversity and Inclusion programme
OUR 2030 VISION
Reduce supply chain risks related to human rights, labour,
the environment and anti-bribery by ensuring adherence
to our Supplier Code of Conduct through training, auditing
and remediation; drive supply chain innovation, quality and
efficiencies through a strong, diverse network of suppliers
7. Environment
There was reduced occupancy at our locations for much of the year
due to the global pandemic which led to significant decreases in
consumption levels across our environmental impact areas. In
2021, we reduced Scope 1 and Scope 2 (location-based) emissions
by 16% from 2020. Since 2010, we have achieved a 70% reduction in
Scope 1 and 2 (location-based) emissions. We also reduced total
energy by 12%; water use by 19%; and waste sent to landfill from
reporting locations, excluding estimated data, by 38% in the year.
For Scope 1, Scope 2 and Scope 3 (work-related flights, cloud
computing, home-based working and commuting) we were net
zero in 2021, through a combination of reduced emissions, the
purchase of renewable energy and renewable energy certificates,
with the balance offset through Verified Carbon Standard (VCS)
credits in REDD+ carbon sequestration projects in Kenya and Brazil.
In 2021, we launched our new environment targets which include a
target, set using the science-based target methodology, to reduce
emissions by 46% in 2025 against a 2015 baseline. We also signed
The Climate Pledge which commits RELX to achieving net zero
emissions across our Scope 1, 2 and 3 emissions by 2040 at
the latest.
In the year, Elsevier launched a free report, Pathways to Net Zero,
exploring clean energy research trends – available on the RELX
SDG Resource Centre – with a foreword by former UN Secretary
General, Ban Ki-moon. RELX is one of the Mayor of London’s
London Business Climate Leaders committed to cutting pollution
and emissions in excess of UK government thresholds. The goal
is to help London, where we are headquartered, become a zero
carbon city by 2050. We received an A- grade in CDP’s climate
change programme and are a member of RE100.
We have a positive environmental impact through our
environmental products and services, which spread good practice,
encourage debate and aid researchers and decision makers. The
most recent results from SCOPUS show that our share of citations
in environmental science represented 51% of the total market.
A small proportion of our customers operate in carbon intensive
industries, and a small number of journals (less than 1% of the
total) cover fossil fuel industries. We are committed to continuing
our efforts to support these customers in their energy transition.
In support of this year’s United Nations World Environment Day
theme, Ecosystem Restoration, RELX and Elsevier released a
special issue on biodiversity. This collection of more than 110
articles and book chapters from Elsevier publications was
RELX Annual report and financial statements 2021 | Corporate responsibility 53
Intensity ratio
(per £m revenue)
2021 Variance
0.72
2020
13% 0.64
2021 ENVIRONMENTAL PERFORMANCE
Absolute performance
2021 Variance
2020
16% 4,516
5,226
Scope 1 (direct
emissions) tCO2e
Scope 2 (indirect
location-based
emissions) tCO2e
Scope 2
(market-based
emissions) tCO2e
Total energy (MWh)
Water (m3)
Waste sent to
landfill (t)*
Production
paper (t)
43,445 -18% 53,131
6.00 -20% 7.47
7,715 -28% 10,773
1.07 -30% 1.52
117,161 -12% 133,238
175,372 -19% 215,858
16.17 -14% 18.74
24.21 -20% 30.36
107 -38%
173
0.01 -39% 0.02
40,910
13% 36,259
5.65
11% 5.10
Environmental data covers 12 months from December 2020 to November 2021. Scope
1 emissions increased in 2021 with a rebound in economic activity; it represents only
11% of the combined total of Scope 1 and Scope 2 (location-based) emissions, which
overall decreased in the year by 16%.
* From reporting locations only, excluding estimated data.
The partial occupancy of our locations, due to Covid-19, through much of the year
resulted in reductions across many reported metrics. We expect an increase in
subsequent years as colleagues return to their offices, to bring us back in line with
our historical reduction trend.
made freely available on the RELX SDG Resource Centre. We
also prepared special issues for World Water Day, Earth Day
and World Food Day and COP26.
We use our convening power to highlight environmental
innovation. The winners of Elsevier’s 2021 Chemistry for Climate
Action Challenge were Pham Hong and Dinh Van Khuong from
Vietnam, for their proposal to produce nano filters and
biodegradable plastics from rice straws, and Brenya Isaac from
Ghana, for his proposal to produce building and packaging
materials from coconut waste. Each winning proposal was
awarded a $25,000 prize.
Full performance data can be found in the 2021 Corporate
Responsibility Report (www.relx.com/go/crreport).
2021 OBJECTIVES
Environmental
responsibility – SDG
12 (Responsible
Consumption
and Production):
Embed new
environment targets
Carbon reduction
– SDG 13 (Climate
Action):Launch
internal carbon tax for
work- related flights
Achievement
§ Engagement with key teams on
targets; developed new paper
reporting requirements to include
certification; Launched new cross
business working group on net zero
§ Internal carbon price launched
covering Scope 1, Scope 2 and Scope 3
(flights) beginning at $25 per tCO2e
with plans to increase the carbon
price over time
2022 OBJECTIVES
§ Environmental responsibility – SDG 12 (Responsible
Consumption and Production): Launch new online reporting
tool for sustainable production paper
§ Carbon reduction – SDG 13 (Climate Action): Advance
reporting of Scope 3 (other) emissions
OUR 2030 VISION
Further environmental knowledge and positive action through
our products and services and, accordingly, conduct our
business with the lowest environmental impact possible
ENVIRONMENTAL TARGETS
Focus area
Climate change
Energy
Targets 2025
Reduce Scope 1 and 2 location-based carbon emissions by 46% against a 2015 baseline
Reduce energy and fuel consumption of our locations by 30% against a 2015 baseline
Continue to purchase renewable electricity equivalent to 100% of RELX’s global
electricity consumption
Waste*
Production paper
Decrease waste sent to landfill from reporting locations to 35% below 2015 levels
100% of RELX production papers to be graded in PREPS as ‘known and
responsible sources’ or certified to FSC or PEFC by 2025
Environmental
Management System Achieve Group ISO14001 certification across the business by 2025
* From reporting locations only, excluding estimated data.
100% of new office fit outs to achieve the RELX Sustainable Fit Out standard by 2025
2021
Performance
-53%
-43%
100%
-87%
98%
55% of the business
by headcount
First draft of
Standard developed
RELX Annual report and financial statements 2021 | Corporate responsibility overviewMarket segmentsGovernanceFinancial statements and other informationFinancial reviewCorporate ResponsibilityOverview 54
2021 awards for excellence
Our employees, products and shows regularly receive awards for excellence. In 2021, for example:
Scientific, Technical & Medical
Risk
1
6
%
Elsevier’s ClinicalPath won Best
Computerised Decision Support
Solution at the 2021 MedTech
Breakthrough Awards for the
second consecutive year
Elsevier won the Well
Established business category
at the 2020 Deshima Business
Awards, held in 2021 due to the
Covid-19 pandemic
LexisNexis Risk Solutions won
the Judge’s Choice award for
Best Identity Verification/
Authentication Solution at the
2021 Card Not Present Awards
LexisNexis Risk Solutions won
seven awards at the 2021
Cyber Defense Global InfoSec
Awards
Legal
Exhibitions
LexisNexis Legal &
Professional won best Content
Search & Discovery Solution
at the 2021 SIIA CODiE Awards
for Nexis Newsdesk™
LexisNexis Legal &
Professional received several
awards from career site
Comparably, including Best
Global Culture and Best
Company Outlook
At the 2021 Trade Show
Executive Awards, RX US won
three GRAND Awards for
Vision East, G2E and ISC West
and a Rock Star award for
FIBO USA
RX Austria was named a
2020/2021 ‘Superbrand’,
ranking it amongst the most
exceptional business brands
in Austria for the quality of its
offers and services
2021 investor and other recognition
Sustainability Award
Bronze Class 2022
MSCI ESG Ratings
assessment
AAA rating
Sustainalytics ESG Risk Rating
- Global Universe: 11th out of
14,000+
- Media: 1st out of 298
S&P Global Sustainability
Yearbook
- Bronze class distinction
Dow Jones Sustainability Index
Included in
– World
– Europe
FTSE4Good Index
Included in:
– FTSE4Good Europe Index
– FTSE4Good UK Index
STOXX Global ESG
Leaders Indices
– Included
ECPI Indices
– Included
CDP
– Climate programme score: A-
– Forest programme score: B-
– Water programme score: B
Tortoise Responsibility100
Index
– 4th out of 100
AJA ISO14001
- Certified
Workplace Pride Global
Benchmark
– Awared Advocate status
Bloomberg’s Gender-Equality
Index
– Included
RE100
– Member
The full 2021 Corporate Responsibility Report is available at www.relx.com/go/CRReport
RELX Annual report and financial statements 2021 | Corporate responsibility
55
Taskforce on Climate-related Financial Disclosure (TCFD)
RELX makes the following disclosures, consistent with the
recommendations of the Taskforce on Climate-related Financial
Disclosure (TCFD).
I. Governance
a. Board oversight of climate-related risks and opportunities
This statement has been reviewed and approved by the Board.
The RELX Board oversees the internal controls and risk
management practices as described on page 66 of this document. In
the year, the Company’s approach to managing its climate change
risks and opportunities was covered by the Board at multiple points
including in discussions with and papers from the Chief Financial
Officer (CFO), responsible to the Board for performance against
climate targets; the head of ESG and corporate responsibility; and
the head of Risk and Audit, as part of RELX Audit Committee review
of the Company’s risk management process.
The result of these undertakings is that the Board has found climate
change has no material impact on RELX’s business in the short
term and will be unlikely to have a significant impact in the medium
and longer term. This is based on the review of RELX’s low sector
exposure to climate change and consideration of climate change by
the business in its strategy, activities, policies, annual budgets, and
business plans, setting and monitoring of performance objectives,
major capital expenditures, acquisitions and divestitures.
Moreover, this view is predicated on strong climate action by the
business in 2021 and over time to mitigate the effect of transition
and physical climate change risks as described in this statement
and in the 2021 RELX Corporate Responsibility Report.
b. Management’s role in assessing and managing climate-
related risks and opportunities
Management in each business area is responsible for identifying
customer need and developing relevant products related to climate
change. This ranges from launching and advancing scientific
journals carrying articles on climate change itself, energy
efficiency, and other climate-related topics, providing data and
analytics that support customers in reducing their environmental
impact, providing information and analytics on laws and regulations
related to the environment, through to running exhibitions targeted
at the renewable energy sector.
As RELX’s senior environmental champion, the CFO leads the RELX
environmental checkpoint group which sets strategy and targets for
the measuring and reducing the group’s own environmental impact.
The group monitors performance throughout the year, tracking
emissions across all scopes and performance relative to our target
to reduce Scope 1 and 2 (location based) carbon emissions by 46%
by 2025 against a 2015 baseline.
Management in each operational area is responsible for ensuring
the continuity of the group’s operations, including resilience to
events caused by extreme weather events. The Business Continuity
Forum brings together specialists from across the group to identify
risks, assess continuity and incident response plans, learn from
incidents and spread best practice.
We recognise climate change intersects with other environmental
and sustainability issues. For this reason, climate change is also
considered by the RELX Corporate Responsibility (CR) Forum,
with oversight by a member of the executive committee, the head
of corporate affairs, and led by the head of ESG and corporate
responsibility. The CR Forum meets twice per year and comprises
more than 70 participants including function heads and business
area leads from across the Company.
II. Strategy
a. Climate-related risks and opportunities in the short, medium,
and long term
While we are in a low carbon intensive sector, the Board and the
environmental checkpoint group continued to consider our
climate-related risks and opportunities based on the scenarios
in section c below. Examples of our findings include:
Short (<10 years) – Transition risks: Policy and legal requirements
relative to climate change will continue to increase as they have over
the last five years requiring us to ensure adequate disclosure; there
will be increasing stakeholder pressure requiring us to ensure our
products and services help accelerate the green transition for our
customers in carbon intensive and other industries. Physical risks:
Variability in weather patterns and more frequent extreme weather
events mean we must advance both mitigation and adaptation
strategies, including though out business continuity planning.
Medium (10 to 20 years) – Transition risks: There will likely be
increased pricing of GHG emissions and enhanced reporting
obligations, particularly in areas like supply chain emissions;
reputational damage could result if we don’t show medium term
results for meeting our obligations as a signatory of The Climate
Pledge and similar initiatives. Physical risks: Gradual increase of
average temperatures will affect businesses we operate in some
locations more than others and we are developing country and local
response plans; mean temperature rise will likely affect our
suppliers as well so we will continue our due diligence related to
exposure in our supply chain.
Long term (20 years +) – Transition risks: Stigmatization could result
if our products and services are not seen as part of the solution to
climate change; this creates an opportunity for us to increase
offerings that support a lower carbon world. Physical risks: Sea
level rise will be varying but worse under the business as usual
scenario which will increase risk of business interruption and
damage to property; we recognise that this must be part of our
planning for the places where we will operate in the future.
See our statement of principal risks page 66 for additional
information on our approach to risk.
Our carbon action hierarchy is to first, reduce our carbon emissions;
second, to purchase increasing amounts of our green tariff energy
as availability improves in global markets where we operate; third,
to purchase certified renewable energy certificates where
necessary; and finally, to purchase high quality, verified offsets for
the remainder. For Scope 1, Scope 2 and Scope 3 work-related
flights, cloud computing, home-based working and commuting we
were net zero in 2021. RELX is committed to achieving net zero
emissions following our carbon action hierarchy across all scopes
by 2040 at the latest, through our participation in The Climate
Pledge, part of the UN Race to Zero campaign. We have expanded
understanding of our Scope 3 data in the year and aim in 2022 to set a
Scope 3 emissions reduction target in order to obtain validation of
all our carbon targets by the Science Based Targets initiative (SBTi).
We used the SBTi methodology in setting our Scope 1 and 2
(location-based) reduction target of 46% by 2025 (2015 baseline).
b. Impact of climate-related risks and opportunities on our
business, strategy, and financial planning
We are using the climate scenarios we outline below to inform
strategy and financial planning at both the Board and business area
level. One example is our work with finance and other teams in the
business on a carbon price of $25 tCO2e (which will increase over
RELX Annual report and financial statements 2021 | Corporate responsibility overviewMarket segmentsGovernanceFinancial statements and other informationFinancial reviewCorporate ResponsibilityOverview 56
time) on business-related travel, with proceeds to be used for,
among other measures, internal climate action projects such as
solar installations where possible.
It is also part of strategy planning for our portfolio as our scientific
research information, analysis of environmental law, tracking of
carbon and recycling markets becomes even more important for
our customers, investors and other stakeholders in their own
responses to climate change.
Customers, including those operating in carbon-intensive
industries, use the information, data and analytics we provide to
support them in reducing their environmental impact. In Risk,
products such as CIRIUM, which serves the aviation sector, are
playing a role in supporting climate action. Using data analytics,
CIRIUM helps airlines plan and conduct maintenance of their fleet
to ensure their efficient operation and helps identify flight routes
for maximum occupancy so emissions per passenger are lower.
Elsevier is working to support clean energy and in 2021 held
Geofacets Day: Energy Transition, a virtual conference on the
energy transition for oil and gas, renewable energy and metals and
mining professionals. Topics included redefining the sector’s
future, renewable energy and the role of geosciences in the energy
transition. In addition, Elsevier combined content, data and
analytics to launch a free report, Pathway to Net Zero: The Impact of
Clean Energy Research, highlighting the global impact of current
research as well as geographic, topic and collaboration trends
across sectors from business to academia.
LexisNexis Legal & Professional provides LexisPSL Environment
to help clients identify environmental liabilities, understand the
commercial implications of environmental law and keep track
of current developments with daily news feeds on new cases,
legislation, and consultations as well as practice notes, Q&As,
and legal precedents.
RX holds World Future Energy Summit, a portfolio of events
specifically designed to combat climate change, in-line with the
United Nations Sustainable Development Goals (SDGs) and the
Paris Agreement. And leading up to COP 26, RX organised the
All-Energy Dcarbonise Week Virtual Sustainability Summit to help
attendees accelerate strategies and actions to achieve net zero.
All RELX businesses are contributing content to the RELX SDG
Resource Centre which provides free access to news, research,
tools and events on the SDGs, including SDG 7 Clean and Affordable
Energy and SDG 13 Climate Action. The site also incorporates relevant
content from key partners, including the UN Global Compact
(UNGC). In support of COP26, Elsevier released a climate change
special issue on the free RELX SDG Resource Centre, a curated list
of 160 journal articles and book chapters to inspire positive
environmental action and further climate research. See the TCFD
risk table in the 2021 RELX Corporate Responsibility Report.
A small proportion of our customers operate in carbon intensive
industries, including in agriculture and in aviation, and we are
committed to continuing our efforts to support these customers in
their energy transition.
c. Resilience of the organisation’s strategy, taking into
consideration different climate-related scenarios, including a
2°C or lower scenario
We have a threefold strategy to address climate-related risks:
1.
Minimising our environmental impact through measures such
as energy efficiency, renewable energy, reducing waste and
other measures. This reduces our exposure to future legislation
and the rising price of carbon
2.
3.
Providing products and services which support customers
through their transition to a low-carbon economy. We anticipate
demand for these offerings to continue to increase over time
Supporting wider action on climate change through
collaboration, partnerships and initiatives such as the Digital
Impact of Media Project in conjunction with the Responsible
Media Forum, comprised of industry peers, and Bristol University
We manage both transition and physical risks of climate change as
described above: that is, consideration by the Board and the Audit
Committee as part of robust risk control measures covering our
products and operations (including our property portfolio and supply
chain). The environmental checkpoint group tracks all related
metrics and provides data and advice to the Board and engages
throughout the business. We also pursue best practice through
engagement with the UNGC, Race to Zero, Media Climate Pact,
Net Zero Carbon Events, and the Science-based Targets initiative,
among others.
We have considered three possible future scenarios from business
as usual to a 1.5 degrees scenario with an indication of possible
timeframe. The following scenarios are not exact descriptions of
an expected future, but the description of a future based on
certain assumptions.
In 2021, energy represented less than 1% of the RELX cost base.
Although energy costs, and associated carbon costs, may increase
substantially, the impact on RELX’s financial results is likely to
remain limited. In scenarios where extreme weather events occur
more frequently, we may see increased incidents that disrupt our
operations, necessitating additional measures, with some potential
cost, to ensure our operational resilience. However, in the context of
RELX’s overall cost base, we would not expect any such incremental
cost to be significant.
We believe our strategy will be resilient even in the most challenging
future scenario.
Scenario 1 – Business as usual (RCP 8.5)
In this scenario, carbon emissions continue to increase at current
rates and temperature increases exceed 4 degrees Celsius by the
year 2100.
Short term: While some policies could be introduced to reduce
carbon emissions, action is limited. Some countries may price
carbon emissions and set standards for building and vehicle
energy efficiency.
Medium term: The availability of renewable energy may grow, but
the share of energy from fossil fuels will remain sizeable. With this
level of warming, extreme and severe weather events will likely
increase. Drought and increased precipitation will impact
agriculture. Severe storms will interfere with our supply chains and
logistics. The heightened need for innovation in climate adaptation
infrastructure may increase demand for our environmental products
and services for the scientific, technical and other communities.
Long term: Rising sea levels will affect land use of coastal and
low-lying regions where we may have operations, requiring
investment to protect or relocate key Company facilities to ensure
business continuity. Significant government investment will be
required to mitigate the impacts, for example in strengthening
flood and coastal defences or securing reliable water supplies,
with follow-on effects for places where we and future
customers operate.
Political instability in some regions may increase as populations
compete for resources such as fresh water supplies and as large
numbers of people move from regions most heavily impacted by
RELX Annual report and financial statements 2021 | Corporate responsibility 57
climate change. Global economic uncertainty will likely become the
norm, with limited growth at best and decline at worst. As impacts
become more apparent, public sentiment may favour organisations
like RELX that have taken action to limit the impact of climate change.
We would continue to pursue measures such as science-based
carbon reductions, implementation of innovative technological
solutions, carbon sequestration and (re)forestation, but without the
catalyst of global government investment in these areas.
Scenario 2 – 2 degrees Celsius climate change (RCP 2.6) In this
scenario, carbon emissions are halved by 2050 and climate change
does not exceed 2 degrees Celsius by the year 2100.
Short term: Countries would introduce more challenging carbon
targets as they update their Nationally Determined Contributions
under the 2016 Paris Climate Agreement. A range of new policies
would most likely be introduced across many countries to control
carbon emissions including carbon pricing, higher standards on
building and vehicle energy efficiency, with increased renewable
energy generation in global power grids. Such developments will be
reflected in our policies and procedures. and such climate
mitigation efforts could increase the demand for many of our
products and services.
Medium term: There should be public and private investment in
greater carbon sequestration, capture and storage, (re)forestation,
and other measures – all of which would aid action in these areas
within our business.
Long term: The frequency of extreme weather events will increase
but not as much as under Scenario 1. There will still be disruption to
transport and logistics through storms, but sea level rise will be
more limited, as will costs we may face associated with adaptation
and mitigation projects. With reduced climate impacts, political and
economic instability will be lessened. Climate-related migration
will still be a factor but to a smaller degree than anticipated under
Scenario 1.
Scenario 3 – 1.5 degrees climate change (RCP1.9) In this scenario, to
achieve a 66% chance of avoiding more than 1.5C warming by 2100,
inclusive and sustainable development will be a key consideration
for policy makers with high levels of international cooperation.
Short term: Emissions must peak in the early 2020s to achieve net
zero emissions by 2050, These ambitious carbon reductions would
be supported by new policies (with carbon prices reaching as much
or more than four times the price under the 2 degrees C scenario)
and strong regulation
Medium term: Buildings will be subject to tougher standards to
achieve carbon reductions of nearly three times those under the 2
degree scenario. Energy costs and associated carbon costs could
be higher than in Scenario 1 or 2, but this is unlikely to have a major
impact for RELX as energy is not a significant part of our cost base
as indicated above.
The transport sector will see significant change, with the majority of
vehicles powered by alternative sources. Nature-based solutions to
climate change, such as forestation, are also likely to play an
important role. In this scenario, RELX efforts to reduce emissions,
seek technology-driven carbon solutions and pursuit of
nature-based decarbonisation will be magnified.
Long term: By 2050, approximately 80% of global energy should be
from renewable sources. Use of coal will decrease significantly and
oil will drop to very low levels by 2060. After 2050, technologies such
as bioenergy and carbon capture and storage will need to be
widespread to remove excess carbon from the atmosphere to
ensure emissions are net negative.
III. Risk Management
a. Our processes for identifying and assessing climate-related
risks
The principal and emerging risks facing the business, which have
been assessed by the Audit Committee and Board, are described on
pages 66 to 70. The directors have considered the risk of climate
change to the business, including the positive contribution that
RELX makes through activities such as supporting academic
research, pricing recyclable materials, and enabling customers to
access our products electronically.
Climate-related risks are assessed as part of the RELX risk
management process. Risks are formally reviewed every six months.
The significance of each risk is assigned based on the potential impact
to revenue and the likelihood of that risk being realised. As part of our
environmental management system, the climate risk assessment
covers transition and physical risks as described above, and also
includes the assessment of existing and emerging regulatory
requirements related to climate change. These include carbon
pricing schemes, taxes and additional reporting requirements.
b. Our processes for managing climate-related risks
Climate change responsibilities are assigned to key roles, including
the CFO at the executive level. Performance is monitored and
evaluated throughout the year by the environmental checkpoint
group, chaired by the CFO, and new programmes are introduced as
required to control climate-related transition and physical risks.
We engage with Government Affairs colleagues on legislative and
product trends, as well as through fora such as the Aldersgate
Group, and through the process of ISO 14001 environmental
certification of our EMS. We speak with experts in the business, our
climate-related employee resource groups including Green Teams
and Elsevier’s Climate Board, and gain insights through industry
network the Responsible Media Forum’s Climate Pact and the
cross-sector through networks like the CR and Sustainability
Council of the Conference Board, chaired by our head of ESG and
corporate responsibility.
The business continuity programme, under the direction of a RELX
Business Continuity Forum, oversees mitigations of the physical
risks of climate change on our operations through business
continuity plans which include remote working and detailed
employee information.
Supplier management practices of the Global Procurement team,
the Supplier Resiliency Working Group, the Business Continuity
Forum and the Socially Responsible Supplier programme mitigate
the potential impact of climate-related risks on our supply chain.
These practices include supplier engagement on their practices
and policies and interventions through a risk-based programme of
supplier audits and remediation.
IV. Metrics and Targets
Key climate-related metrics and targets are set out on pages 53 and
54 of this report. The remuneration of the CEO and the CFO is linked
to the achievement of environment targets. These included in 2021,
a key performance objective to reduce Scope 1 and Scope 2
(location-based) carbon emissions by 33% against a 2015 baseline
53% achievement; reduce energy and fuel consumption by 23%
against a 2015 baseline 43% achievement; and to purchase
renewable energy equivalent to 100% of RELX’s global electricity
consumption. See page 100 for further details.
RELX Annual report and financial statements 2021 | Corporate responsibility overviewMarket segmentsGovernanceFinancial statements and other informationFinancial reviewCorporate ResponsibilityOverview 58
Sustainability Accounting Standards Board
(SASB) Disclosure
SASB Standards enable businesses around the world to identify, manage and communicate financially-material sustainability
information to their investors. The SASB standards are industry specific and identify the minimal set of financially material sustainability
topics and their associated metrics for the typical company in an industry.
SASB assigns RELX to Professional and Commercial Services. The following disclosure is made according to the SASB standard for
that sector.
Topic
Data security
Accounting metric
Code
Disclosure location
Description of approach to identifying and
addressing data security risks
Description of policies and practices relating
to collection, usage and retention of
customer information
(1) Number of data breaches, (2) percentage
involving customers' confidential business
information (CBI) or personally identifiable
information (PII), (3) number of customers
affected
SV-PS-230a.1
See: 2. Governance on pages 46, 48
SV-PS-230a.2
See: 2. Governance on pages 46, 48
SV-PS-230a.3
Except as a matter of public record,
RELX does not disclose this
information for reasons of
commercial confidentiality
SV-PS-330a.1
See: 3. People on page 49
Workforce diversity
and engagement
Percentage of gender and racial/ ethnic
group representation for (1) executive
management and (2) all other employees
(1) Voluntary and (2) involuntary turnover
rate for employees
SV-PS-330a.2
See: 3. People on page 49
Employee engagement as a percentage
SV-PS-330a.3
See: 3. People on page 49
Professional
integrity
Description of approach to ensuring
professional integrity
SV-PS-510a.1
See: 2. Governance on page 46
Total amount of monetary losses as a result
of legal proceedings associated with
professional integrity
SV-PS-510a.2
Except as a matter of public record,
RELX does not disclose this
information for reasons of
commercial confidentiality
Activity metrics
Number of employees by: (1) full-time and
part-time, (2) temporary, and (3) contract
SV-PS-000.A
See: 3. People on page 49
Employee hours worked, percentage billable
SV-PS-000.B
See: 3. People on page 49
RELX Annual report and financial statements 2021 | Corporate responsibility 59
Financial
review
In this section
60 Chief Financial Officer’s report
66 Principal and emerging risks
RELX Annual report and financial statements 2021Market segmentsGovernanceFinancial statements and other informationFinancial reviewCorporate ResponsibilityOverview 60
Chief Financial Officer’s report
Underlying revenue growth and
adjusted operating profit growth
in 2021 were 7% and 13%, and
adjusted earnings per share grew
at 17% at constant currency.
Nick Luff, Chief Financial Officer
Revenue
Underlying revenue growth was 7%, with all four market
segments contributing to underlying growth. The underlying
growth rate reflects good growth in electronic and face-to-face
revenues, partially offset by continued print revenue declines.
Acquisitions and exhibition cycling effects both had a small
positive impact on revenue, and disposals had a small negative
impact, to give growth at constant currency of 8%. The impact
of currency movements was to decrease revenue growth by
6%. Reported revenue including the effects of exhibition
cycling, portfolio changes and currency movements,
was £7,244m (2020: £7,110m), up 2%.
Profit
Underlying growth in adjusted operating profit was 13%, with
growth in each of the three largest business areas, and a return
to a positive adjusted operating result in Exhibitions. Acquisitions
and disposals had a small impact on adjusted operating profit
growth, but combined were net neutral, giving growth at constant
currency of 13%. Currency effects decreased adjusted operating
profit by 7%.
Total adjusted operating profit, including the impact of acquisitions
and disposals and currency effects, was £2,210m (2020: £2,076m),
up 6%.
Operating costs on an underlying basis grew 5%, reflecting
investment in global technology platforms, the launch of new
products and services and one-off charges relating to a reduction
in the corporate real estate footprint, partly offset by the benefits
of continued process innovation. Actions continue to be taken
across our businesses to improve cost-efficiency. Total operating
costs, including the impact of acquisitions, disposals and currency
effects, were flat.
The overall adjusted operating margin of 30.5% was 1.3 percentage
points higher than in the prior year. On an underlying basis, including
cycling effects, the margin improved by 1.6 percentage points with
portfolio and currency effects reducing margins by 0.1 and 0.2
percentage points respectively.
Reported operating profit was £1,884m (2020: £1,525m) up 24%,
reflecting the increase in adjusted operating profit together with
lower amortisation expense on acquired intangible assets and
there being no exceptional costs (2020: £183m).
The amortisation charge in respect of acquired intangible assets,
including the share of amortisation in joint ventures, decreased
to £298m (2020: £376m). This includes impairments of £13m
in respect of acquired intangible assets in Legal (2020: £65m
relating to acquired intangible assets in Legal and Exhibitions).
Acquisition-related items in the year included a gain of £27m
(2020: £76m) from the revaluation of a put and call option
arrangement relating to a non-controlling interest in a
subsidiary within Legal.
Revenue
£m
Adjusted operating profit
£m
7,341
7,492
7,874
7,110
7,244
2,284
2,346
2,491
2,076
2,210
2017
2018
2019
2020
2021
2017
2018
2019
2020
2021
RELX Annual report and financial statements 2021 | Financial review RELX Annual report and financial statements 2021 | Chief Financial Officer’s report
61
Reported figures
Revenue
Operating profit
Profit before tax
Net profit attributable to RELX PLC shareholders
Net margin
Net debt
Earnings per share
Adjusted figures
Operating profit
Operating margin
Profit before tax
Net profit attributable to RELX PLC shareholders
Net margin
Cash flow
Cash flow conversion
Return on invested capital
Earnings per share
2021
£m
2020
£m
Change
Change
at constant
currencies
Change
underlying
7,244
1,884
1,797
1,471
20.3%
6,017
76.3p
2,210
30.5%
2,077
1,689
23.3%
2,230
101%
11.9%
87.6p
7,110
1,525
1,483
1,224
17.2%
6,898
63.5p
2,076
29.2%
1,916
1,543
21.7%
2,009
97%
10.8%
80.1p
+8%
+7%
+2%
+24%
+21%
+20%
+20%
+6%
+13%
+13%
+8%
+9%
+15%
+17%
+11%
+20%
+9%
+17%
RELX uses adjusted and underlying figures as additional performance measures. Adjusted figures primarily exclude the amortisation of acquired intangible assets and
other items related to acquisitions and disposals, and the associated deferred tax movements. In 2020, we also excluded exceptional costs in the Exhibitions business.
Reconciliations between the reported and adjusted figures are set out on pages 193 to 197. Underlying growth rates are calculated at constant currencies, excluding the
results of acquisitions until 12 months after purchase, and excluding the results of disposals and assets held for sale. Underlying revenue growth rates also exclude
exhibition cycling. Constant currency growth rates are based on 2020 full-year average and hedge exchange rates.
Adjusted net interest expense was £133m (2020: £160m), with
the reduction reflecting lower average net borrowings and lower
average interest rates. The adjusted interest expense excludes
the net pension financing charge of £9m (2020: £10m).
Adjusted profit before tax was £2,077m (2020: 1,916m), up 8%.
Reported profit before tax was £1,797m (2020: £1,483m) up 21%,
reflecting the improvement in reported operating profit, offset
by smaller gains from disposals and other non-operating items
of £55m (2020: £130m), mainly relating to disposal and revaluation
gains in the ventures portfolio.
The adjusted tax charge was £384m (2020: £373m). The 2021
charge includes the benefit of tax credits arising from the substantial
resolution of prior year tax matters. The 2020 charge includes the
benefit of temporary relaxation of interest deductibility restrictions
in the United States.
The adjusted effective tax rate was 18.5% (2020: 19.5%). This
excludes movements in deferred taxation assets and liabilities
related to goodwill and acquired intangible assets, but includes
the benefit of tax amortisation where available on those items.
Adjusted operating profits and taxation are grossed up for the
equity share of taxes in joint ventures. The application of tax
law and practice is subject to some uncertainty and amounts
are provided in respect of this. Discussions with tax authorities
relating to cross-border transactions and other matters are
ongoing. Although the outcome of open items cannot be
predicted, no significant impact on profitability is expected.
The reported tax charge was £326m (2020: £275m), including tax
associated with the amortisation of acquired intangible assets,
disposals and other non-operating items. The increase in the
UK corporation tax rate to 25% (from April 2023) was enacted
in the first half of 2021 requiring a revaluation of deferred tax
balances but the impact on the tax charge in the income
statement was not material.
The adjusted net profit attributable to RELX PLC shareholders was
£1,689m (2020: £1,543m), up 17% at constant currency and up 9%
after changes in exchange rates. Adjusted earnings per share was
also up 17% at constant currency, and after changes in exchange
rates was up 9% at 87.6p (2020: 80.1p).
Adjusted operating profit margin
Adjusted cash flow conversion
31.1%
31.3%
31.6%
29.2%
30.5%
96%
96%
96%
97%
101%
2017
2018
2019
2020
2021
2017
2018
2019
2020
2021
Market segmentsGovernanceFinancial statements and other informationFinancial reviewCorporate ResponsibilityOverview 62
The reported net profit attributable to RELX PLC shareholders
was £1,471m (2020: £1,224m). Reported earnings per share was
76.3p (2020: 63.5p).
Cash flows
Adjusted cash flow was £2,230m (2020: £2,009m), up 11% compared
with the prior period and up 20% at constant currency. The rate of
conversion of adjusted operating profit to adjusted cash flow was
101% (2020: 97%).
CONVERSION OF ADJUSTED OPERATING PROFIT INTO CASH
YEAR TO 31 DECEMBER
Adjusted operating profit
Depreciation of property, plant and
equipment
Amortisation of internally developed
intangible assets*
Depreciation of right-of-use assets
Pre-publication amortisation
EBITDA
Capital expenditure
Repayment of lease principal (net)**
Working capital and other items
Adjusted cash flow
Adjusted cash flow conversion
2021
£m
2,210
52
295
80
60
2,697
(337)
(76)
(54)
2,230
101%
2020
£m
2,076
60
281
88
62
2,567
(362)
(87)
(109)
2,009
97%
*
**
Excluding impairment charges that have already been excluded from adjusted
operating profit.
Excludes repayments and receipts in respect of disposal-related vacant property
and is net of sublease receipts.
Capital expenditure was £337m (2020: £362m), including
£309m (2020: £319m) in respect of capitalised development
costs, reflecting sustained investment in new products. Capital
expenditure was 4.7% of revenue (2020: 5.1%). Depreciation of
property, plant and equipment and amortisation of internally
developed intangible assets charged within adjusted operating
profit was £347m (2020: £341m). Depreciation and amortisation
were 4.8% of revenue (2020: 4.8%). These percentages exclude
principal lease repayments under IFRS 16 of £76m (2020: £87m),
pre-publication costs of £73m (2020: £80m) that were capitalised
as current assets, depreciation of leased right-of-use assets of
£80m (2020: £88m) and amortisation of pre-publication costs of
£60m (2020: £62m).
Interest paid (net) was £118m (2020: £172m) with the higher amount
in the prior period reflecting the cash element of the 2019 charge
on early redemption of some long term bonds in the first half of
2020. Tax paid of £342m (2020: £496m) was lower than the current
tax charge, with the difference reflecting timing of tax payments.
In 2021, the cash outflow relating to Exhibitions exceptional costs
charged in 2020 was £52m (2020: £51m). Payments made in respect
of acquisition-related items amounted to £46m (2020: £67m).
Free cash flow before dividends was £1,672m (2020: £1,223m).
Ordinary dividends paid to shareholders in the year, being the
2020 final dividend and 2021 interim dividend, amounted to
£920m (2020: £880m). Free cash flow after dividends was an
inflow of £752m (2020: £343m).
RECONCILIATION OF CASH GENERATED FROM OPERATIONS
TO ADJUSTED CASH FLOW
YEAR TO 31 DECEMBER
Cash generated from operations
Dividends received from joint ventures
Purchases of property, plant and equipment
Expenditure on internally developed
intangible assets
Acquisition-related items
Exceptional costs in Exhibitions
Pension deficit recovery payment
Repayment of lease principal (net)*
Proceeds from disposals of property,
plant and equipment
Adjusted cash flow
2021
£m
2,476
20
(28)
(309)
46
52
44
(76)
2020
£m
2,264
31
(43)
(319)
67
51
45
(87)
5
–
2,230
2,009
*
Excludes repayments and receipts in respect of disposal-related vacant property
and is net of sublease receipts.
FREE CASH FLOW
YEAR TO 31 DECEMBER
Adjusted cash flow
Interest paid (net)
Cash tax paid*
Exceptional costs in Exhibitions
Acquisition-related items
Free cash flow before dividends
Ordinary dividends
Free cash flow post dividends
2021
£m
2,230
(118)
(342)
(52)
(46)
1,672
(920)
752
2020
£m
2,009
(172)
(496)
(51)
(67)
1,223
(880)
343
*
Net of cash tax relief on exceptional costs incurred in 2020 and acquisition-
related items and including cash tax impact of disposals.
RECONCILIATION OF NET DEBT YEAR-ON-YEAR
YEAR TO 31 DECEMBER
Net debt at 1 January
Free cash flow post dividends
Net disposal proceeds
Acquisition cash spend (including
borrowings in acquired businesses)
Share repurchases
Purchase of shares by the Employee
Benefit Trust
Other*
Currency translation
Movement in net debt
2021
£m
(6,898)
752
190
(262)
–
(1)
28
174
881
2020
£m
(6,191)
343
29
(874)
(150)
(37)
16
(34)
(707)
Net debt at 31 December
(6,017)
(6,898)
*
Distributions to non-controlling interests, pension deficit recovery payments,
leases, share option exercise proceeds.
Total consideration on acquisitions completed in the year
was £255m (2020: £878m). Cash spent on acquisitions was
£262m (2020: £874m), including deferred consideration of
£19m (2020: £5m) on past acquisitions and spend on venture
capital investments of £8m (2020: £2m). Total consideration for
disposals of non-strategic assets was £22m (2020: £15m). Net
cash inflow from disposals after timing differences and separation
and transaction costs, and including £178m from realisation of
venture capital investments, was £190m (2020: £29m). There
were no share repurchases in 2021 (2020: £150m). The Employee
Benefit Trust purchased shares of RELX PLC to meet future
RELX Annual report and financial statements 2021 | Financial review RELX Annual report and financial statements 2021 | Chief Financial Officer’s report
63
Invested capital and returns
Net capital employed was £9,810m at 31 December 2021
(2020: £9,536m), an increase of £274m. The carrying value of
goodwill and acquired intangible assets increased by £14m.
An amount of £156m (2020: £427m) was capitalised in the year
in respect of acquired intangible assets and £131m (2020: £570m)
was recorded as goodwill. These additions were offset by
amortisation and impairment of acquired intangible
assets and by currency movements.
SUMMARY BALANCE SHEET
AS AT 31 DECEMBER
Goodwill and acquired intangible assets*
Internally developed intangible assets*
Property, plant and equipment*,
right-of-use assets* and investments
Net pension obligations
Working capital
Net capital employed
* Net of accumulated depreciation and amortisation.
2021
£m
9,419
1,251
504
(269)
(1,095)
9,810
2020
£m
9,405
1,244
740
(624)
(1,229)
9,536
Development costs of £309m (2020: £319m) were capitalised within
internally developed intangible assets, most notably investment
in new products and related infrastructure across RELX.
Net pension obligations, i.e. pension obligations less pension
assets, decreased to £269m (2020: £624m). There was a net
deficit of £8m (2020: £354m) in respect of funded schemes,
which were on average 100% funded at the end of the year on
an IFRS basis. The lower deficit mainly reflects increases in the
value of the UK scheme assets, combined with higher discount
rates in the UK, decreasing the liability.
The post-tax return on average invested capital in the year was
11.9% (2020: 10.8%). The increase is largely due to growth in
adjusted operating profit and a lower effective tax rate.
obligations in respect of share based remuneration totalling
£1m (2020: £37m). Proceeds from the exercise of share options
were £32m (2020: £16m).
Funding
Debt
Net debt at 31 December 2021 was £6,017m, a decrease of
£881m since 31 December 2020. The majority of our borrowings
are denominated in US dollars and euros, and as sterling was
stronger against the euro but slightly weaker against the US dollar
at the end of the year, our net borrowings decreased when
translated into sterling. Excluding currency translation effects,
net debt decreased by £707m. Expressed in US dollars, net debt
at 31 December 2021 was $8,123m, a decrease of $1,327m.
Gross debt of £6,167m (2020: £7,123m) is comprised of bank and
bond borrowings of £5,959m (2020: £6,848m) and lease liabilities
under IFRS 16 of £208m (2020: £275m). The fair value of related
derivative net assets was £35m (2020: £119m), finance lease
receivables totalled £2m (2020: £18m) and cash and cash
equivalents totalled £113m (2020: £88m). In aggregate,
these give the net debt figure of £6,017m (2020: £6,898m).
The effective interest rate on gross bank and bond borrowings
was 2.0% in 2021 (2020: 2.1%). As at 31 December 2021, gross
bank and bond borrowings had a weighted average life remaining
of 5.0 years and a total of 62% of them were at fixed rates, after
taking into account interest rate derivatives. The ratio of net debt
(including pensions) to EBITDA (adjusted earnings before interest,
tax, depreciation and amortisation) was 2.4x (2020: 3.3x), calculated
in US dollars. Excluding pensions, the ratio was 2.3x (2020: 3.0x).
The improvement in these leverage ratios reflects the recovery
in earnings and the reduction in debt in the year.
Liquidity
The Group has ample liquidity and access to debt capital markets,
providing the ability to repay or refinance debt as it matures and to
fund ongoing requirements. The Group has access to committed
bank facilities aggregating $3.0bn maturing in 2023 or 2024. These
committed facilities are undrawn. They include a covenant limiting
the ratio of net debt to EBITDA to 3.75x, with RELX having the option
once over the life of the facilities to increase this limit to 4.25 x for
a 12 month period (covering two consecutive semi-annual testing
dates) following any acquisition. For the purposes of the covenant,
net debt excludes pensions. At 31 December 2021, measured on
the basis used in the covenant test, the ratio of net debt to EBITDA
was 2.3x.
RELX term debt maturities at 31 December 2021
Return on invested capital
$m
43
1,366
850
819 854
769
911
950
750
569
0
7
12.9%
13.2%
13.6%
10.8%
11.9%
2022
2023
2024
2025
2026 2027 2028 2029 2030 2031
2032
>2032
2017
2018
2019
2020
2021
Term debt translated at 31 December 2021 exchange rates, stated at par value
Market segmentsGovernanceFinancial statements and other informationFinancial reviewCorporate ResponsibilityOverview 64
RETURN ON INVESTED CAPITAL
AS AT 31 DECEMBER
Adjusted operating profit
Tax at adjusted effective rate
Adjusted effective tax rate
Adjusted operating profit after tax
Average invested capital*
Return on invested capital
Alternative performance measures
2021
£m
2,210
(409)
18.5%
1,801
15,108
11.9%
2020
£m
2,076
(405)
19.5%
1,671
15,435
10.8%
RELX uses a range of alternative performance measures (‘APMs’)
in the reporting of financial information, which are not defined by
generally accepted accounting principles (‘GAAP’) such as IFRS.
These APMs are used by the Board and management as they
believe they provide relevant information in assessing the Group’s
performance, position and cash flows, enable investors to track
more clearly the core operational performance of the Group, and
provide a clear basis for assessing RELX’s ability to raise debt and
invest in new business opportunities.
* Average of invested capital at the beginning and the end of the year, retranslated
at average exchange rates for the year. Invested capital is calculated as net capital
employed, adjusted to add back accumulated amortisation and impairment of
acquired intangible assets and goodwill and to exclude the gross up to goodwill
in respect of deferred tax, and to add back exceptional restructuring costs.
Reported earnings per share and dividends
Reported earnings per share
Ordinary dividend per share
2021
£m
76.3p
49.8p
2020
£m
63.5p
47.0p
Change
20.2%
6.0%
The reported earnings per share was 76.3p (2020: 63.5p).
The final dividend proposed by the Board is 35.5p per share.
This gives total dividends for the year of 49.8p (2020: 47.0p),
6% higher than the prior year.
Dividend cover, being the number of times the total interim and
proposed final dividends for the year is covered by the adjusted
earnings per share, is 1.8x (2020: 1.7x). Dividend cover by the
reported earnings per share, is 1.5x (2020: 1.4x). The dividend
policy of RELX PLC is, over the longer term, to grow dividends
broadly in line with adjusted earnings per share, while targeting
cover of at least two times.
During 2021, no RELX PLC shares were repurchased, and 61,040
(2020: 1.8m) shares were purchased by the Employee Benefit
Trust. As at 31 December 2021, total shares in issue, net of shares
held in treasury and shares held by the Employee Benefit Trust,
amounted to 1,929.4m.
Distributable reserves and parent company
balance sheet
As at 31 December 2021, RELX PLC had distributable reserves
of £7.0bn (2020: £6.9bn). In line with UK legislation, distributable
reserves are derived from the non-consolidated RELX PLC
balance sheet. The consolidated reserves reflect adjustments
such as the amortisation of acquired intangible assets that are
not taken into account when calculating distributable reserves.
The parent company balance sheet net assets are higher than
those of the group due to the investment in RELX Group plc being
carried at a value of £18bn which is not reflected on the consolidated
balance sheet. The parent company balance sheet can be found on
page 186. Further information on the distributable reserves can
be found in the parent company financial statements on page 187.
Management also uses these financial measures, along with IFRS
financial measures, in evaluating the operating performance of
the Group as a whole and of the individual business areas. These
measures should not be considered in isolation from, or as a
substitute for, financial information presented in compliance
with IFRS. The measures may not be directly comparable to
similarly reported measures by other companies.
Reconciliations of adjusted measures are set out on pages
192 to 197.
Accounting policies
The consolidated financial statements are prepared in accordance
with UK adopted International Accounting Standards following the
accounting policies shown in the notes to the financial statements
on pages 143 to 183. The accounting policies and estimates which
require the most significant judgement relate to the valuation
of intangible assets, the capitalisation of development spend,
taxation and accounting for defined benefit pension schemes.
Further detail is provided in the accounting policies on pages
143 to 144 and in the relevant notes to the accounts.
Tax Principles
Taxation is an important issue for us and our stakeholders,
including our shareholders, governments, customers, suppliers,
employees and the global communities in which we operate. We
have set out our approach to tax in our global tax strategy. This
incorporates our Tax Principles along with additional disclosures
around where we pay taxes and our broader contribution to
society. This is all made publicly available on our website:
www.relx.com/go/taxprinciples. We maintain an open dialogue
with tax authorities, and are vigilant in ensuring that we comply
with current tax legislation. We have clear and consistent tax
policies and tax matters are dealt with by a professional tax
function, supported by external advisers. We proactively seek
to agree arm’s-length pricing with tax authorities to mitigate tax
risks of significant cross-border operations. We actively engage
with policy makers, tax administrators, industry bodies and
international institutions to provide informed input on proposed
tax measures, so that we and they can understand how those
proposals would affect our businesses. In addition, we participate
in consultations with the Organisation for Economic Co-operation
and Development (OECD), European bodies and the United Nations.
RELX Annual report and financial statements 2021 | Financial review RELX Annual report and financial statements 2021 | Chief Financial Officer’s report
65
We continue to advance climate reporting in line with the
recommendations of the Taskforce on Climate Related Financial
Disclosure (TCFD), with relevant data and metrics included in the
Corporate Responsibility section on page 40, supported by further
detail in the Corporate Responsibility Report. In the year, we
signed up to the Climate Pledge, part of the United Nations Race
to Zero initiative, pledging to reach net zero emissions across all
carbon scopes by 2040 at the latest.
Corporate responsibility
Refer to the Corporate Responsibility Report on pages 38 to 58 for
further information.
Nick Luff
Chief Financial Officer
Treasury policies
The Board of RELX PLC agrees policies for managing treasury
risks. The key policies address security of funding requirements,
the target fixed/floating interest rate exposure for debt and foreign
currency hedging and place limits on counterparty exposures.
A more extensive summary of these policies is provided in note
17 to the financial statements on pages 167 to 172. Financial
instruments are used to finance the RELX businesses and to
hedge transactions. The Group’s businesses do not enter
into speculative transactions.
Liquidity management
The capital structure is managed to support RELX’s objective
of maximising long-term shareholder value through appropriate
security of funding, ready access to debt and capital markets,
cost-effective borrowing and flexibility to fund business and
acquisition opportunities while maintaining appropriate leverage
to ensure an efficient capital structure.
Over the long-term, RELX seeks to maintain cash flow
conversion of 90% or higher and credit rating agency metrics
that are consistent with a solid investment grade credit rating.
These metrics, as defined by the rating agencies, include net
debt to EBITDA, including and excluding pensions, and various
measures of cash flow as a percentage of net debt. Further detail
on liquidity management is provided on pages 167 and 168.
Capital management
RELX uses the cash flow it generates to fund capital expenditure
required to drive organic growth, to make selective acquisitions
and to provide a growing dividend to shareholders, while retaining
balance sheet strength to maintain access to cost-effective
sources of borrowing. Share repurchases are undertaken to
maintain an efficient balance sheet. Further detail on capital
management is provided on pages 167 and 168.
Climate change
At RELX, we recognise our responsibility to consider our impact
on the environment and to address climate change. The nature
of RELX’s business means the environmental impact of our
operations is relatively low. Through activities such as assessing
environmental risk; publishing environmental research; analysing
environmental law; tracking recycling markets and emissions
trading regimes and producing environmental events, we make
a positive contribution to climate change risks. Notwithstanding
our low environmental impact, the Board has considered the risks
associated with climate change. As noted in the Principal Risks
section, we believe the primary way climate change could impact
RELX is through operational disruption caused by severe weather
events, as reflected in the Technology and Business Resilience risk.
Market segmentsGovernanceFinancial statements and other informationFinancial reviewCorporate ResponsibilityOverview 66
Principal and emerging risks
RELX has established risk management practices that are
embedded into the operations of the businesses, based on the
Internal Control-Integrated Framework (2013) by the Committee
of Sponsoring Organisations of the Treadway Commission. The
principal and emerging risks facing the business, which have
been assessed by the Audit Committee and Board, including
the incremental risks and uncertainties relating to the Covid-19
pandemic, are described below. The directors confirm this process
is robust and includes consideration of risks, including emerging
risks, that could threaten RELX’s business models, future
performance, solvency, liquidity or reputation.
It is not possible to identify every risk that could affect our businesses,
and the actions taken to mitigate the risks described below cannot
provide absolute assurance that a risk will not materialise and/or
adversely affect our business or financial performance. Our risk
management and internal control processes are described in the
corporate governance section. A description of the business and a
discussion of factors affecting performance is set out in the Chief
Executive Officer’s report and the RELX business review. Our
approach to the promotion of human rights, managing corporate
responsibility, environmental and other non-financial risks is set
out in the RELX business overview and the separate Corporate
Responsibility Report. This includes processes used to identify
and mitigate climate related risks which are further described
on pages 55 to 57 in the Corporate Responsibility section of this
report and the Corporate Responsibility Report. In addition
disclosures against the Sustainability Accounting Standards
Board Standards for the Professional and Commercial Services
sector are also set out on page 58 in the Corporate Responsibility
section of this report.
Covid-19 pandemic
The impact of the Covid-19 pandemic on RELX’s business
continues to depend on a range of factors which we are not able
to accurately predict, including the duration and scope of the
pandemic, and the duration and extent of containment measures,
such as quarantines or other travel restrictions and site closures.
These measures have had and may continue to have a significant
impact on face-to-face events in our Exhibitions business with few
in-person events taking place outside China and Japan between
March 2020 and March 2021, with re-opening in key markets
occurring later in 2021. There remains uncertainty about venue
availability and the impact of travel restrictions going forward.
EXTERNAL RISKS
Risk
Description and impact
Mitigation
Economy
and market
conditions
Demand for our products and services may be adversely
impacted by factors beyond our control, such as the economic
environment in, and trading relations between, the United
States, Europe and other major economies (including the
evolution of the United Kingdom’s trading relationship with
the European Union), political uncertainties, acts of war
and civil unrest as well as levels of government and private
funding provided to academic and research institutions.
Intellectual
property
rights
Our products and services include and utilise intellectual
property. We rely on trademark, copyright, patent, trade
secret and other intellectual property laws to establish
and protect our proprietary rights in this intellectual property.
There is a risk that our proprietary rights could be challenged,
limited, invalidated or circumvented, which may impact demand
for and pricing of our products and services. Copyright laws
are subject to national legislative initiatives, as well as cross-
border initiatives such as those from the European Commission
and increased judicial scrutiny in several jurisdictions in which
we operate. This creates additional challenges for us in
protecting our proprietary rights in content delivered
through the internet and electronic platforms.
Our businesses are focused on professional markets which
have generally been more resilient in periods of economic
downturn. We deliver information solutions, many on
a subscription and recurring revenue basis, which are
important to our customers’ effectiveness and efficiency.
We operate diversified businesses in terms of sectors,
markets, customers, geographies and products and services.
We have extended our position in long-term global growth
markets through organic new launches supported by the
selective acquisition of small content and data sets. We
continue to dispose of businesses that no longer fit
our strategy.
We continuously monitor economic and political developments
to assess their impact on our strategy which is designed to
mitigate these risks. In response to specific uncertainties,
our businesses engage in scenario planning and develop
contingency plans where relevant.
We actively engage in developing and promoting the legal
protection of intellectual property rights. Our subscription
contracts with customers contain provisions regarding the
use of proprietary content. We are vigilant as to the use of
our intellectual property and, as appropriate, take legal
action to challenge illegal content distribution sources.
RELX Annual report and financial statements 2021 | Financial review 67
EXTERNAL RISKS
Risk
Description and impact
Mitigation
Data
resources
and data
privacy
Paid
subscriptions
Our businesses rely extensively upon content and data from
external sources. Data is obtained from public records,
governmental authorities, publicly available information
and media, customers, end users and other information
companies, including competitors. The disruption or loss
of data sources, either because of data privacy laws (or their
interpretation by courts, regulators, customers or civil society)
or because data suppliers decide not to supply them, may
impose limits on our collection and use of certain kinds of
information and our ability to communicate, offer or make
such information available or useful to our customers.
Compromise of data, through a failure of our cyber security
measures (see ‘Cyber security’ below), other data loss
incidents or failure to comply with requirements for proper
collection, use, storage and transfer of data, by ourselves,
or our third-party service providers, may damage our
reputation, divert time and effort of management and
other resources, and expose us to risk of loss, fines
and penalties, litigation and increased regulation.
Our Scientific, Technical & Medical (STM) primary research
content, like that of most of our competitors, is sold largely
on a paid subscription basis. There is continued debate in
government, academic and library communities, which are
the principal customers for our STM content, regarding to
what extent such content should be funded instead through
fees charged to authors or authors’ funders and/or made
freely available in some form after a period following
publication. Some of these methods, if widely adopted,
could adversely affect our revenue from paid subscriptions.
STRATEGIC RISKS
Risk
Description and impact
Customer
acceptance
of our
products
Acquisitions
Our businesses are dependent on the continued demand by
our customers for our products and services and the value
placed on them. They operate in highly competitive and
dynamic markets, and the means of delivery, customer
demand for, and the products and services themselves,
continue to change in response to rapid technological
innovations, legislative and regulatory changes, the entrance
of new competitors, and other factors. Failure to anticipate
and quickly adapt to these changes, or to deliver enhanced
value to our customers, could impact demand for our
products and services and consequently adversely affect
our revenue or the long-term returns from our investment
in electronic product and platform initiatives.
We supplement our organic development with selected
acquisitions. If we are unable to generate the anticipated
benefits such as revenue growth and/or cost savings
associated with these acquisitions, it could adversely
affect return on invested capital and financial condition
or lead to an impairment of goodwill.
We seek as far as possible to have proprietary content.
Where content is supplied to us by third parties, we aim to
have contracts which provide mutual commercial benefit.
We also maintain an active dialogue with regulatory
authorities on privacy and other data-related issues,
and promote, with others, the responsible use of data.
We have established data privacy principles, governance
structures and control programmes designed to ensure
data privacy requirements are met and which protect data
and individuals’ privacy across all jurisdictions where we
operate. We have put in place and test response plans to
manage incidents where data privacy might be compromised.
We embed our data privacy principles in agreements with
third parties.
We have assurance programmes to monitor compliance
and conduct training and awareness programmes.
We engage extensively with stakeholders in the STM
community to better understand their needs and deliver
value to them. We are open to serving the STM community
under any payment model that can sustainably provide
researchers with the critical information tools that they need.
In particular, the number of articles we publish on an author
pays, open access basis is growing rapidly. We focus on the
integrity and quality of research through the editorial and peer
review process; we invest in efficient editorial and distribution
platforms and in innovation in platforms and tools to make
content and data more accessible and actionable; and we
develop our research systems to provide capabilities to
manage different payment models. We ensure vigilance
on plagiarism and the long-term preservation of
research findings.
Mitigation
We are focused on the needs and economics of our customers.
We gain insights into our markets, evolving customers’ needs,
the potential application of new technologies and business
models, and the actions of competitors and disrupters.
These insights inform our market strategies and operational
priorities. We continuously invest significant resources in
our products and services, and the infrastructure to support
them. We leverage user centred design and development
methods and customer analytics and invest in new and
enhanced technologies to provide content and innovative
solutions that help them achieve better outcomes and
enhance productivity.
Acquisitions are made within the framework of our overall
strategy, which emphasises organic development. We have
a well formulated process for reviewing and executing
acquisitions and for managing the post-acquisition integration.
This process is underpinned with clear strategic, financial
and ethical criteria. We closely monitor the integration and
performance of acquisitions.
RELX Annual report and financial statements 2021 | Principal and emerging risksMarket segmentsGovernanceFinancial statements and other informationFinancial reviewCorporate ResponsibilityOverview 68
OPERATIONAL RISKS
Risk
Description and impact
Technology
and business
resilience
Face-to-face
events
Our businesses are dependent on electronic platforms
and networks, primarily the internet, for delivery of our
products and services. These could be adversely affected
if our electronic delivery platforms, networks or supporting
infrastructure experience a significant failure, interruption
or security breach. Climate change may increase the intensity
and frequency of severe weather events which increases the
risk of significant failure.
Face-to-face events are susceptible to economic cycles,
communicable diseases, severe weather events and other
natural disasters, terrorism and assignment of venues to
alternative uses. Each or any of these may impact exhibitors’
and visitors’ desire and ability to travel in person to events and
the availability of event venues. These factors each have the
potential to reduce revenues, increase the costs of organising
events and adversely affect cash flows and reputation.
Mitigation
We have established procedures for the protection of
our businesses and technology assets. These include
the development and testing of business continuity plans,
including IT disaster recovery plans and back-up delivery
systems, to reduce business disruption in the event of major
technology or infrastructure failure, terrorism or adverse
weather incidents.
We actively review our ability to host events considering
the availability of venues and national and local regulations
including those related to health, travel and security. Where
regulations permit us to hold events, we take appropriate
measures for the well being and safety of exhibitors, visitors
and employees. The physical events being run are supported
by enhanced digital services, including remote participation
by both exhibitors and attendees. In addition, we are holding
a number of standalone virtual events and are further
developing and delivering complementary digital offerings
in order to maintain our presence in the industry communities
that we serve.
Cyber
security
Our businesses maintain and use online databases and
platforms delivering our products and services, which we
rely on, and provide data to third parties, including customers
and service providers. These databases and information are a
target for compromise and face a risk of unauthorised access
and use by unauthorised parties including through cyber,
ransomware and phishing attacks on us or our third-party
service providers.
We have established security programmes which are
constantly reviewed and updated to address developments
in the threat landscape with the aim of ensuring our ability
to prevent, respond to and recover from a cyber-attack or
ransomware attack, that data is protected, our business
infrastructures and those of our third-party service providers
continue to operate and that we comply with relevant
legislative, regulatory and contractual requirements.
Our cyber security measures, and the measures used by
our third-party service providers, may not detect or prevent
all attempts to compromise our systems, which may jeopardise
the security of the data we maintain or may disrupt our systems.
Failures of our cyber security measures could result in
unauthorised access to our systems, misappropriation
of our or our users’ data, deletion or modification of stored
information or other interruption to our business operations.
As techniques used to obtain unauthorised access to or to
sabotage systems change frequently and may not be known
until launched against us or our third-party service providers
we may be unable to anticipate or implement adequate
measures to protect against these attacks and our service
providers and customers may likewise be unable to do so.
Compromises of our or our third-party service providers’
systems, or failure to comply with applicable legislation or
regulatory or contractual requirements could adversely
affect our financial performance, damage our reputation
and expose us to risk of loss, fines and penalties, litigation
and increased regulation.
Our organisational and operational structures depend on
outsourced and offshored functions, including use of cloud
service providers. Poor performance, failure or breach of
third parties to whom we have outsourced activities could
adversely affect our business performance, reputation and
financial condition.
The implementation and execution of our strategies and
business plans depend on our ability to recruit, motivate
and retain skilled employees and management. We compete
globally and across business sectors for talented management
and skilled individuals, particularly those with technology
and data analytics capabilities. An inability to recruit,
motivate or retain such people could adversely affect our
business performance. Failure to recruit and develop talent
regardless of gender, race or other characteristics could
adversely affect our reputation and business performance.
We have governance mechanisms in place to design
and monitor common policies and standards across
our businesses.
We invest in appropriate technological and physical controls
which are applied across the enterprise in a risk-based
security programme which operates at the infrastructure,
application and user levels. These controls include, but are
not limited to, infrastructure vulnerability management,
application scanning and penetration testing, network
segmentation, encryption and logging and monitoring.
We provide regular training and communication initiatives
to establish and maintain awareness of risks at all levels of
our businesses. We have appropriate incident response plans
to respond to threats and attacks which include procedures
to recover and restore data and applications in the event of an
attack. We maintain appropriate information security policies
and contractual requirements for our businesses and run
programmes monitoring the application of our data security
and resilience policies by third party service providers. We
use independent internal and third-party auditors to test,
evaluate, and help enhance our procedures and controls.
We select our vendors with care and establish contractual
service levels that we closely monitor, including through
key performance indicators and targeted supplier audits.
We have developed business continuity plans to reduce
disruption in the event of a major failure by a vendor.
We have well established management development and
talent review programmes. We monitor capability needs
and remuneration schemes are tailored to attract and
motivate the best talent available at an appropriate level
of cost. We actively seek feedback from employees, which
feeds into plans to enhance employee engagement and
motivation. Our Diversity and Inclusion Strategy creates
a diverse workforce and environment that respects
individuals and their contributions.
Supply chain
dependencies
Talent
RELX Annual report and financial statements 2021 | Financial review 69
FINANCIAL RISKS
Risk
Pensions
Tax
Treasury
Description and impact
Mitigation
We have professional management of our pension schemes
and we focus on maintaining appropriate asset allocation
and plan designs. We review our funding requirements on a
regular basis with the assistance of independent actuaries
and ensure that the funding plans are appropriate. We seek
to manage pension liabilities by reviewing pension benefits
provided to staff as well as the structure of
scheme arrangements.
We maintain an open dialogue with tax authorities and
are vigilant in ensuring that we comply with current tax
legislation. We have clear and consistent tax policies and
tax matters are dealt with by a professional tax function,
supported by external advisers. As outlined in the Chief
Financial Officer’s report on pages 60 to 65 we engage with
tax authorities and international organisations. We continue
to monitor legislative developments in the jurisdictions in
which we operate and consider the potential impacts of
proposed regulation changes under various scenarios.
The principles we adopt in our approach to tax matters can
be found on our website at www.relx.com/go/taxprinciples.
Our approach to capital structure and funding is described
in the Chief Financial Officer’s report on pages 60 to 65.
The approach to the management of treasury risks is
described in note 17 to the consolidated financial statements.
We operate a number of pension schemes around the world,
including local versions of the defined benefit type in the UK
and the United States. The US scheme is closed to future
accruals. The UK scheme has been closed to new hires since
2010. The members who continue to accrue benefits now
represent a small and reducing portion of the overall UK
based workforce. The assets and obligations associated
with these pension schemes are sensitive to changes in
the market values of the scheme’s investments and the
market-related assumptions used to value scheme liabilities.
Adverse changes to asset values, discount rates, longevity
assumptions or inflation could increase funding requirements.
Our businesses operate globally, and our profits are subject
to taxation in many different jurisdictions and at differing tax
rates. Tax laws that currently apply to our businesses may be
amended by the relevant authorities or interpreted differently
by them, and these changes could adversely affect our
reported results.
The RELX PLC consolidated financial statements are
expressed in pounds sterling and are subject to movements
in exchange rates on the translation of the financial information
of businesses whose operational currencies are other than
sterling. The United States is our most important market and,
accordingly, significant fluctuations in the US dollar exchange
rate could significantly affect our reported results. We also
earn revenues and incur costs in a range of other currencies,
including the euro and the yen, and significant fluctuations
in these exchange rates could also significantly impact our
reported results.
Macroeconomic, political and market conditions may adversely
affect the availability and terms of short and long-term
funding, volatility of interest rates, the credit quality of our
counterparties, currency exchange rates and inflation.
The majority of our outstanding debt instruments are, and
any of our future debt instruments may be, publicly rated by
independent rating agencies. Our borrowing costs and
access to capital may be adversely affected if the credit
ratings assigned to our debt are downgraded.
REPUTATIONAL RISKS
Risk
Ethics
Description and impact
Mitigation
As a global provider of professional information solutions
to the Risk, STM, Legal and Exhibitions markets we, our
employees and major suppliers are expected to adhere to
high standards of integrity and ethical conduct, including
those related to anti-bribery and anti-corruption, fraud,
sanctions, competition and principled business conduct.
A breach of generally accepted ethical business standards
or applicable laws could adversely affect our business
performance, reputation and financial condition.
Our Code of Ethics and Business Conduct is provided to every
employee and is supported by training and communication.
It encompasses such topics as competing fairly, prohibiting
corrupt business practice and fair employment practices
and encouraging open and principled behaviour. We have
well-established processes for monitoring, reporting and
investigating instances of unethical conduct. Our major
suppliers are required to adhere to our Supplier Code
of Conduct.
The Strategic Report, as set out on pages 2 to 69, has been approved by the Board of RELX PLC.
By order of the Board
Henry Udow
Company Secretary
9 February 2022
Registered Office
1-3 Strand
London
WC2N 5JR
RELX Annual report and financial statements 2021 | Principal and emerging risksMarket segmentsGovernanceFinancial statements and other informationFinancial reviewCorporate ResponsibilityOverview 70
RELX Annual report and financial statements 2021
Governance
In this section
72 Board Directors
74 RELX Senior Executives
76 Chair’s introduction to
corporate governance
77 Corporate Governance Review
97 Report of the Nominations Committee
100 Directors’ Remuneration Report
122 Report of the Audit Committee
125 Directors’ Report
RELX Annual report and financial statements 2021
71
Market segmentsGovernanceFinancial statements and other informationFinancial reviewCorporate ResponsibilityOverview 72
Board Directors
Executive Directors
Non-Executive Directors
Erik Engstrom (58)
Chief Executive Officer
Paul Walker (64)
Chair
R N C
June Felix (65)
Non-Executive Director
A C
Appointed: Chief Executive Officer of RELX
since November 2009. Joined as Chief
Executive Officer of Elsevier in 2004.
Other appointments: Non-Executive Director
of Smith & Nephew plc and Bonnier Group.
Past appointments: Prior to joining was a
partner at General Atlantic Partners. Before
that was President and Chief Operating Officer
of Random House Inc and President and Chief
Executive Officer of Bantam Doubleday Dell,
North America. Began his career as a
consultant with McKinsey. Served as a
Non-Executive Director of Eniro AB and
Svenska Cellulosa Aktiebolaget SCA.
Education: Holds a BSc from Stockholm
School of Economics, an MSc from the
Royal Institute of Technology in Stockholm,
and gained an MBA from Harvard Business
School as a Fulbright Scholar.
Nationality: Swedish
Appointed: March 2021
Other appointments: Chair of Ashtead Group
plc.
Past appointments: Previously was Chair of
Halma plc, European Directories, Wan disco,
Inc, Perform Group and Sophos Group plc.
Former Non-Executive Director of Experian
plc, Epic Software Corporation, Diageo plc,
Mytravel Group plc and Cussins Property
Group plc. Before that was Chief Executive
Officer of Sage Group plc for 16 years, having
previously served as its Chief Financial
Officer and Chief Financial Controller.
Education: Has a degree in Economics
from York University, and is a qualified
UK Chartered Accountant.
Nationality: British
Appointed: October 2020
Other appointments: Chief Executive Officer
of IG Group Holdings plc. Member of the Board
of Advisers of the London Technology Club.
Past appointments: Served as a
Non-Executive Director of IG Group Holdings plc
from 2015 until the time of her appointment
as Chief Executive Officer in October 2018.
Previously held various executive management
positions at a number of large multinational
businesses in Hong Kong, London and New York,
including Verifone, IBM, Citibank and Chase
Manhattan. Earlier in her career, was a
strategy consultant with Booz Allen Hamilton.
Nationality: American
Nick Luff (54)
Chief Financial Officer
Appointed: September 2014
Other appointments: Non-Executive Director
of Rolls-Royce Holdings plc.
Past appointments: Prior to joining the
Group was Group Finance Director of Centrica
plc from 2007. Before that was Chief Financial
Officer at The Peninsular & Oriental Steam
Navigation Company (P&O) and its affiliated
companies, having previously held a number
of senior finance roles at P&O. Began his career
as an accountant with KPMG. Formerly a
Non-Executive Director of QinetiQ Group plc
and Lloyds Banking Group plc.
Education: Has a degree in Mathematics
from Oxford University and is a qualified
UK Chartered Accountant.
Nationality: British
Wolfhart Hauser (72)
Non-Executive Director
Senior Independent Director
Chair of the Remuneration Committee
R N C
Appointed: April 2013
Other appointments: Non-Executive
Director of Associated British Foods plc.
Past appointments: Chair of FirstGroup
plc until July 2019. Chief Executive Officer
of Intertek Group plc from 2005 until 2015.
Prior to that he was Chief Executive Officer
of TÜV Sud AG between 1998 and 2002
and Chief Executive Officer of TÜV Product
Service GmbH for ten years. Formerly
a Non-Executive Director of Logica plc.
Education: Holds a master’s degree in
Medicine from Ludwig-Maximilian-
University Munich and a Medical Doctorate
from Technical University Munich.
Nationality: German
Charlotte Hogg (51)
Non-Executive Director
A C
Appointed: December 2019
Other appointments: Executive Vice President
and Chief Executive Officer for the European
Region of Visa Inc. Executive Director of Visa
Europe Limited. Non-Executive Director of
NowTeach and a Director of Kettlethorpe
Sport Horses Limited.
Past appointments: Chief Operating Officer
at the Bank of England. Before that Head of
Retail Banking for Santander UK, Managing
Director UK and Ireland for Experian plc,
and held senior roles at Morgan Stanley
in New York and London.
Nationality: British, American and Irish
RELX Annual report and financial statements 2021 | Governance RELX Annual report and financial statements 2021 | Board Directors
73
Marike van Lier Lels (62)
Non-Executive Director
Workforce Engagement Director
N C
Linda Sanford (69)
Non-Executive Director
R C
Suzanne Wood (61)
Non-Executive Director
Chair of the Audit Committee
A C
Appointed: July 2015
Other appointments: Member of the
Supervisory Boards of NS (Dutch Railways),
Dura Vermeer, Post NL and Innovation Quarter.
Past appointments: Member of the
Supervisory Boards of TKH Group NV, Royal
Imtech NV, Maersk BV, KPN NV, USG People
NV and Eneco Holding NV, and Executive
Vice President and Chief Operating Officer
of the Schiphol Group. Prior to joining
Schiphol Group, was a member of the
Executive Board of Deutsche Post Euro
Express and held various senior positions
with Nedlloyd. Member of various Dutch
governmental advisory boards.
Nationality: Dutch
Appointed: December 2012
Other appointments: An independent Director
of Consolidated Edison, Inc, Pitney Bowes,
Inc and Interpublic Group of Companies, Inc.
Serves on the board of trustees of the
New York Hall of Science.
Past appointments: Senior Vice President,
Enterprise Transformation, IBM Corporation
until 2014, having joined the company in 1975.
A consultant to The Carlyle Group from 2015 to
July 2018. Formerly a Non-Executive Director
of ITT Corporation, served on the boards of
directors of The Business Council of New York
State and the Partnership for New York City,
and on the boards of trustees of the State
University of New York, St John’s University
and Rensselaer Polytechnic Institute.
Nationality: American
Appointed: September 2017
Other appointments: Senior Vice President
and Chief Financial Officer of Vulcan Materials
Company and Non-Executive Director of
Ferguson plc.
Past appointments: Served as Group Finance
Director of Ashtead Group plc from 2012
to 2018. Chief Financial Officer of Ashtead
Group’s largest subsidiary, Sunbelt Rentals
Inc, from 2003 until 2012. Previously, also
served as Chief Financial Officer of two US
publicly listed companies, Oakwood Homes
Corporation and Tultex Corporation.
Nationality: American
Robert MacLeod (57)
Non-Executive Director
R N C
Andrew Sukawaty (66)
Non-Executive Director
A C
Appointed: April 2016
Other appointments: Appointed as Chief
Executive of Johnson Matthey plc in June
2014 after five years as Group Finance Director.
Past appointments: Prior to joining Johnson
Matthey, spent five years as Group Finance
Director of WS Atkins plc, having joined as
Group Financial Controller in 2003. From
1993 to 2002, held a variety of senior finance
and M&A roles with Enterprise Oil plc in
the UK and US. Formerly a Non-Executive
Director of Aggreko plc.
Nationality: British
Appointed: April 2019
Other appointments: Chair of Inmarsat.
Director of Hg Capital LLC and Matrix 42.
Founding Partner of Corten Capital.
Past appointments: Was formerly the Senior
Independent Director of Sky plc between 2013
and 2018. Previously was Chair of Ziggo NV,
Xyratex Group Ltd,and Telenet Group holdings
NV, and deputy Chair of O2 plc. Also served
as a Non-Executive Director of Telefonica
Europe (following its acquisition of O2 plc)
and Powerwave Technologies Inc, and
additionally as Chief Executive of Inmarsat
plc, Sprint Corp and NTL Group Ltd.
Nationality: American
Board Committee membership key
A Audit Committee
R Remuneration Committee
N Nominations Committee
C Corporate Governance Committee
Committee Chair
Market segmentsGovernanceFinancial statements and other informationFinancial reviewCorporate ResponsibilityOverview 74
RELX Senior Executives
Mark Kelsey
Chief Executive Officer
Risk
Kumsal Bayazit
Chief Executive Officer
Scientific, Technical
& Medical and Chair,
RELX Technology Forum
Mike Walsh
Chief Executive Officer
Legal
Hugh M Jones IV
Chief Executive Officer
Exhibitions
Joined in 1983. Appointed to
current position in 2012.
Joined in 2004. Appointed
to current position in 2019.
Joined in 2003. Appointed
to current position in 2011.
Joined in 2011. Appointed
to current position in 2020.
Has held a number of senior
positions across the Group over
the past 30 years. Previously
Chief Operating Officer and
then Chief Executive Officer
of Reed Business Information.
Studied at Liverpool University
and received his MBA from
Bradford University.
Previously President, Exhibitions
Europe, Chief Strategy Officer,
RELX, and Executive Vice
President of Global Strategy
and Business Development for
LexisNexis. Prior to that worked
with Bain & Company in New York,
Los Angeles, Johannesburg
and Sydney. Holds an MBA from
Harvard Business School and
is a graduate of the University
of California at Berkeley.
Previously CEO of LexisNexis
US Legal Markets and Director
of Strategic Business Development
Home Depot. Prior to that was
a practising attorney at Weil,
Gotshal and Manges in Washington
DC and served as a consultant
with The Boston Consulting Group.
Holds a Juris Doctor degree from
Harvard Law School and is a
graduate of Yale University.
Previously Group Managing
Director, Accuity, ICIS, Cirium,
and EG within Risk. Prior to that
was Chief Executive Officer,
Accuity. Holds an MBA from the
Ross School of Business at the
University of Michigan and is a
graduate of Yale University.
RELX Annual report and financial statements 2021 | Governance RELX Annual report and financial statements 2021 | RELX Senior Executives
75
Rose Thomson
Chief Human Resources
Officer
Vijay Raghavan
Director, RELX
Technology Forum and
Chief Technology Officer,
Risk
Henry Udow
Chief Legal Officer
and Company Secretary
Jelena Sevo
Chief Strategy Officer
Youngsuk ‘YS’ Chi
Director of RELX
Corporate Affairs
and Chair, Elsevier
Joined in 2021.
Appointed to current
position at that time.
Joined in 2002. Appointed
to current position in 2019.
Joined in 2011.
Appointed to current
position at that time.
Joined in 2011. Appointed
to current position in 2019.
Joined in 2005. Appointed
to current position in 2011.
Previously Chief Legal
Officer and Company
Secretary of Cadbury plc
having spent 23 years
working with the company.
Prior to that worked at
Shearman & Sterling
in New York and London.
Holds a Juris Doctor
degree from the
University of Michigan
Law School and a
bachelor’s degree from
the University of Rochester.
Previously Director of Tax
Markets for LexisNexis
UK. Prior to that, various
senior management roles
in LexisNexis and Elsevier.
Previously a consultant at
Bain & Co and Booz Allen
Hamilton. Holds an MBA
from Harvard Business
School, a master’s degree
in law from Georgetown
University and a degree
in law from the
University of Belgrade.
Previously was President
and Chief Operating Officer
of Random House, founding
Chairman of Random
House Asia and Chief
Operating Officer for
Ingram Book Group.
Holds an MBA from
Columbia University
and is a graduate
of Princeton University.
Previously Chief Human
Resources Officer at
Standard Life Aberdeen.
Before that, held various
senior human resources
roles at Travelport
International, Barclays
Bank, The Coca-Cola
Company, Coles Group
and The Walt Disney
Company.
Holds an MA in business
management from
Macquarie University
Graduate School of
Management and a
BA in Psychology,
Macquarie University.
Previously Vice President
of Technology, LexisNexis
Insurance Solutions. Prior
technology executive
positions at ChoicePoint,
Paragon Solutions, Primus
Knowledge Solutions,
and McKesson. Holds
a bachelor’s degree in
electrical and electronics
engineering from the Birla
Institute of Technology
and Science, Pilani,
completed an advanced
management program for
executives at MIT Sloan
School of Management,
and is completing a
master’s degree in
cybersecurity from the
Georgia Institute of
Technology.
Market segmentsGovernanceFinancial statements and other informationFinancial reviewCorporate ResponsibilityOverview 76
Chair’s introduction to corporate governance
Effective governance practices are
fundamental in supporting RELX’s
ability to create, protect and ultimately
deliver long-term shareholder value.
Board decision-making
The Board actively takes into account the views of the Company’s
stakeholders when making decisions. Stakeholder engagement
remains a key area of focus for the Board. We listen to our customers,
communities, shareholders, regulators, suppliers and employees
and the insights from this engagement help to shape our strategy
and the decisions we take as a Board.
Introduction
I am pleased to introduce the Corporate Governance Review which
describes the activities of the Board and its Committees during the
year and sets out our governance framework. This is my first year as
your Chair, having succeeded Sir Anthony Habgood on 1 March 2021.
On behalf of the Board, I would like to take this opportunity to thank
Sir Anthony for his exemplary leadership as Chair over the last 11
years, a period which has seen significant shareholder value creation,
consistent revenue and profit growth, simplification of the Company’s
corporate structure and recognition of RELX as a leader in
Environmental Social and Governance (ESG) performance.
RELX has continued to respond to the challenges presented by the
Covid-19 pandemic effectively driving strong growth and financial
performance while at the same time keeping the health and safety
of our employees as our top priority. The Board has worked with senior
executives to ensure the continued delivery of the Company’s strategy,
and to support our customers and employees during this unprecedented
period. I would like to thank my fellow Directors, the senior executives
and all of RELX’s employees for their resilience and commitment.
Our governance framework
Since joining the RELX Board in 2021 I have been impressed with the
Company’s commitment to ensuring that a robust corporate governance
environment is in place. It has a well-established, structured and
disciplined approach to governance. Effective governance practices
are fundamental to RELX’s culture of acting with integrity in all that we
do and it supports the Company’s purpose to benefit society through its
unique contributions, as set out on page 78. The Board believes
pursuing the highest levels of corporate responsibility and delivering
excellent financial performance should be pursued in tandem, and that
doing so will result in long-term shareholder value. It also provides
confidence to our stakeholders that the governance of the Group is
appropriate for its size and profile as a listed company, helps to manage
our risks and opportunities, ensures that our key stakeholders are
appropriately considered in the decisions that we make, and maintains
our corporate reputation.
Stakeholder engagement
Throughout 2021, the Board remained focused on ensuring the health
and safety of our colleagues, our customers and the wider communities
in which we operate, whilst providing solutions and services that meet
the evolving needs of our customers. The Board also continued to
oversee our substantial corporate responsibility programme, with
specific focus on RELX’s ESG activities. Please see pages 84 to 88 for
our stakeholder engagement activities, and www.relx.com/go/crreport)
for our ESG activities in more detail. In May 2021, RELX held an ESG
seminar for investors and analysts which was attended by leaders
from across the RELX business and hosted by the Chief Financial
Officer, Nick Luff. The seminar included presentations on a range of
ESG-related subjects including Elsevier’s Covid-19 response, financial
inclusion and the Rule of Law and was well received by investors. In
September 2021, we conducted our triennial global employee opinion
survey, which covered various topics including culture, inclusion and
diversity. Further information on our employee engagement activities
and the results of the triennial survey can be found on page 80 to 81
and page 85.
The Board’s significant decisions during the year, and its considerations in
making them, are set out on pages 81 to 83. These pages are incorporated
into the Board’s Section 172 Statement, which is set out on page 39, and
therefore into the RELX Strategic Report. This statement explains how
the Board’s decision-making during the year has promoted the success
of the Company having regard, amongst other things, to those matters
set out in Section 172 of the Companies Act 2006.
UK Corporate Governance Code compliance
As a result of RELX PLC’s premium listing on the London Stock Exchange,
it is required to describe how, during the year, it has complied with the
principles of the Code. Details of how we have done so are set out in this
report and those of the Board Committees which follow. RELX is also
required to report on whether it has chosen to comply with each of the
provisions of the Code, or alternatively explain why it has chosen not to
do so. For 2021, the Board deemed it to be in the interests of our stakeholders
to comply with each of the provisions of the Code, with the exception of
provision 19, relating to the length of tenure of the Chair, for a short
portion of the year until my appointment on 1 March 2021, from which
time we again complied with provision 19, and provision 38 (alignment of
Executive Director pension rates with those available to the workforce).
For an explanation of how Executive Director pension benefits are being
aligned by the end of this year with those of the wider workforce, please
see page 77.
Board changes and effectiveness
As mentioned above, I was appointed as Chair of the Board on
1 March 2021. I was also appointed as the Chair of the Nominations
and Corporate Governance Committees, and as a member of the
Remuneration Committee.
Marike van Lier Lels stepped down as a member of the Audit Committee
on 28 July 2021, and Charlotte Hogg was appointed as a member of the
Committee in her place.
Linda Sanford intends to retire from the Board with effect from the
conclusion of the AGM in April, having served on the Board for over nine
years. The Board would like to thank Linda for her service to RELX and her
contribution to the work of the Board and the Committees on which she has
served. Dr Wolfhart Hauser, who will have served nine years on the Board
at the time of the Company’s Annual General Meeting (AGM), has agreed
to remain on the Board until the conclusion of the Company’s 2023 AGM,
subject to shareholder approval, to allow an orderly succession of the roles
of Senior Independent Director and Remuneration Committee Chair, roles
which are currently undertaken by him. The Board believes that this
extension of Dr Hauser’s tenure is in the long-term best interest
of shareholders.
As Chair, I am responsible for ensuring that the effectiveness of the
Board, its Committees and each individual Director is evaluated annually.
For 2021, an internal evaluation process was carried out. The outcome
of the evaluation confirmed that the Board and Committees continue to
operate effectively, and that all of our Directors continue to demonstrate
commitment to their role. For further detail on the Board evaluation
outcomes, please see page 92.
Paul Walker
Chair
9 February 2022
RELX Annual report and financial statements 2021 | Governance RELX Annual report and financial statements 2021
77
Corporate Governance Review
Overview
The shares of RELX PLC are traded through its primary listing on
the London Stock Exchange and its secondary listing on Euronext
Amsterdam, whilst its securities are also traded on the New York
Stock Exchange under its American Depositary Share programme.
Corporate governance compliance statements
The 2018 UK Corporate Governance Code (the Code) applied
to RELX PLC (the Company) during the year.
The Company has complied with the provisions of the Code
throughout the year ended 31 December 2021, with the
exception of provision 19 (length of tenure of the Chair)
until 1 March 2021, and provision 38 (alignment of executive
director pension contribution rates with those available to
the workforce).
Paul Walker succeeded Sir Anthony Habgood as the Chair of
the Board on 1 March 2021, following which the Company was
in compliance with provision 19 for the remainder of the year.
Sir Anthony Habgood stepped down from the Board at that
time, after over 11 years of services as Chair of the Board. At
the Board’s request, Sir Anthony Habgood remained in the role
until his successor took office, in order to ensure continuity of
the RELX Board and governance leadership at a time of
significant business uncertainty due to the Covid-19 pandemic.
The value of pension benefits for current Executive Directors
has decreased over the last several years, and continues
to decrease. They will transition from their current
arrangements to the level of pension benefits provided under
the Company’s regular defined contribution plans (currently
capped at 11% in the UK) by the end of this year (2022), in line
with the recommendations of the Investment Association.
Notwithstanding provision 38 of the Code, the Board viewed
it as appropriate that there be a phased transition of existing
pension benefits for Executive Directors. The current
Remuneration Policy, which was approved by shareholders at
the 2020 Annual General Meeting (AGM) and applies for three
years from the date of approval, includes a pension policy for
any newly appointed Executive Directors which is aligned to
the general workforce. The pension benefits received by the
Executive Directors in 2021 were in line with the terms of the
Directors’ Remuneration Policy.
A description of how the Company has applied the main
principles of the Code is set out on pages 77 to 124.
A copy of the Code can be found on the FRC website at
www.frc.org.uk
The Company and its Directors are required by the Code and
UK Companies Act 2006 (the Act) to make certain statements
and provide confirmations in relation to provisions contained
within them. The locations of those statements are as follows:
§ Pages 5, 14 to 37, 66 to 69, and 77 to 79 for a description of how
opportunities and risks to the future success of the business
have been considered and addressed, the sustainability of
RELX’s business model and how its governance contributes
towards the delivery of its strategy
§ Page 39 for RELX’s Section 172 Statement and pages 81 to 88
for a description of the Board’s principal decisions during the
year and how the interests of RELX’s key stakeholders and
the matters set out in Section 172 of the Act were considered
in Board discussions and decision-making
§ Pages 49 to 50 for an explanation of RELX’s approach to
investing in and rewarding its workforce
§ Pages 66 to 69 for confirmation that the Directors have carried
out a robust assessment of the emerging and principal risks
facing RELX, including a description of its principal risks,
what procedures are in place to identify emerging risks, and
an explanation of how these are being managed or mitigated
§ Pages 80 to 81 for an explanation of the Board’s activities in
assessing and monitoring RELX’s culture
§ Page 94 for confirmation that the Annual Report and Financial
Statements is fair, balanced and understandable and provides
the information necessary for shareholders to assess RELX’s
position and performance, business model and strategy
§ Page 95 for the statement on the status of RELX as a
going concern
§ Page 96 for an explanation of how the Directors have assessed
the prospects of RELX, taking into account its current position
and its emerging and principal risks
Application of UK Corporate Governance
Code Principles
Our governance framework
RELX has in place a corporate governance framework of
processes, leadership bodies and supporting documentation
to ensure that it is appropriately led, directed and controlled for
the benefit of its stakeholders. It brings clarity to those who
work for and on behalf of RELX, both in respect of what they are
expected to deliver through the setting of strategic and financial
objectives, and the values, standards and principles that they
must act in accordance with in the course of delivering those
objectives, which form the foundation of how RELX wants to
conduct its business. It is also designed with the intention of
safeguarding and enhancing long-term shareholder value
and providing a platform from which RELX can meet its
strategic priorities. Our internal control and risk management
arrangements, described on pages 93 to 94, are a central part
of our governance framework.
The framework also helps our organisation to run efficiently
by giving clear instructions on decision-making processes
and authorities, allowing effective use of our resources whilst
facilitating appropriate levels of oversight and involvement for
the Board and its Committees. It exists to support our businesses
as they grow and develop, and to ensure that decisions made by
them are consistent with RELX’s risk appetite, as set by the Board
and implemented by senior management. It therefore reflects
a number of considerations. These include the appropriate
implementation of systems and processes which define the
rights, responsibilities and accountabilities of individuals
throughout RELX, compliance with statutory and regulatory
requirements that apply to RELX, the protection of our reputation
and meeting our own expectations to act with integrity in all we
do. It also seeks to allow our four business divisions to operate
with the speed, agility and flexibility required to address the
needs of their customers in a timely and responsive manner.
Market segmentsGovernanceFinancial statements and other informationFinancial reviewCorporate ResponsibilityOverview 78
Our purpose, strategy, values and culture
Purpose
RELX is a provider of information-based analytics and decision tools for professional and business customers, enabling them to
make better decisions, get better results and be more productive.
Our purpose is to benefit society by developing products that help researchers advance scientific knowledge; doctors and nurses
improve the lives of patients; lawyers promote the rule of law and achieve justice and fair results for their clients; businesses and
governments prevent fraud; consumers access financial services and get fair prices on insurance, and customers learn about
markets and complete transactions.
Our purpose guides our actions beyond the products that we develop. It defines us as a company. Every day across RELX our
employees are inspired to undertake initiatives that make unique contributions to society and the communities in which we operate.
Strategy
Our number one strategic priority is the organic development of increasingly sophisticated information-based analytics and decision
tools that deliver enhanced value to professional and business customers. We aim to achieve leading positions in long-term global
growth markets and leverage our skills, assets and resources across RELX, both to build solutions for our customers and to pursue
cost efficiencies. We are systematically migrating all of our information solutions across RELX towards higher value-add decision
tools, adding broader data sets, embedding more sophisticated analytics and leveraging more powerful technology, primarily through
organic development. We are transforming our core business, building out new products and expanding into higher growth adjacencies
and geographies. We are supplementing this organic development with selective acquisitions of targeted data sets and analytics,
and assets in high-growth markets that support our organic growth strategies and are natural additions to our existing business.
By focusing on evolving the fundamentals of our business we believe that, over time, we are improving our business profile and
the quality of our earnings. This strategy has led to more predictable revenues through a better asset mix and geographic balance;
improved returns by focusing on organic development with strong cash generation; and a higher growth profile as we expand in
higher growth segments, exit from structurally challenged businesses, and gradually reduce the drag from print format declines.
In particular, proactive management of the Covid-19 pandemic’s impact on each of our business areas allowed us to accelerate this
strategic shift.
Values
We strive to do business with integrity. Our principle “Do the Right Thing” embraces behaviours such as being honest in dealing with
others, respecting each other, and courageously speaking out for what is right; thereby guiding our commitment to achieve business
goals in an open, honest, ethical, and principled way. We ask our suppliers to meet the same standards, and provide support for them
to do so as necessary.
Culture
As an information-based analytics and decision tool provider, our corporate culture is fact-based, data-driven and analytical. We
are transparent and non-political in our decision-making. We are passionate about making a positive impact on society through our
unique contributions as a business and our employees feel a strong sense of engagement with the business and its purpose. We focus
on improving customer outcomes while emphasising corporate responsibility and acting with integrity and advancing inclusiveness
and diversity. Our culture encourages community engagement, environmental responsibility and the well-being of our people.
Board leadership
The Board is responsible for promoting the long-term sustainable
success of RELX. Through a programme of meetings, it oversees
the Group’s financial performance and ensures its systems of
risk management, internal control and corporate governance are
fit for purpose and underpin the delivery of its strategy. RELX’s
annual strategy review process comprehensively assesses the
Group’s strategic position and its key strategic options, considering
opportunities and risks to its future success and the long-term
sustainability of its business model. At RELX, there is a process
in place to manage the Board’s annual agenda to ensure that
all necessary items are submitted for its consideration at the
appropriate time with sufficient supporting information, whilst
allowing it adequate time to discuss and develop strategic
proposals. The Board’s discussions are informed by regular
updates and presentations by senior management leaders
who are invited to present at its meetings, as well as those of
its Committees and deep-dive sessions into individual business
areas and selected topics which are regarded as being of
strategic importance.
The Board sets RELX’s purpose and values as set out above. It
periodically reviews and approves our Code of Ethics and Business
Conduct (the Ethics Code) to ensure that this continues to support
and is aligned with delivery of the approved strategy, and RELX’s
Operating & Governance Principles, which provide an overview
of the processes, policies and controls that have been put in
place to manage risk, and serves as a first point of reference
for management of each RELX business area. The Board also
monitors RELX’s workforce policies and practices to ensure that
they are aligned with its values and support long-term sustainable
success, as described on pages 80 to 81.
RELX Annual report and financial statements 2021 | Governance 79
External appointments and conflict of interest
The Board has in place formal procedures to evaluate and review
the external commitments of each Director. Through the activities
of the Nominations Committee, the Board is satisfied that each
Director has sufficient time to devote to their role at RELX in light
of their external appointments. In making this assessment in
February 2022, the Nominations Committee has assessed both
the number and nature of these external commitments, and the
positions that each Director holds on the RELX Board
Committees, their current familiarity and experience with RELX
and how it operates, and our wider culture of encouraging
inclusivity and diversity both at RELX and across wider society.
Our Non-Executive Letter of Appointment sets out the time
commitment required by the Company from its Non-Executive
Directors. When receiving recommendations from the
Nominations Committee for the appointment of any new
Non-Executive Director, the Board always takes into account the
other demands on a potential Director’s time.
The Board also has in place formal procedures to appropriately
manage any actual or potential conflict of interest identified, and
monitors each Directors’ independence to ensure there is no
third-party influence that could potentially compromise their
independent judgement. In accordance with the Company’s
Articles of Association, the Board reviews and authorises as
appropriate situations where a Director has an interest that
conflicts, or may possibly conflict, with those of RELX, and further
to impose any conditions on that authorisation. Additionally, where
there are new external appointments, any commercial
relationships it might have with RELX are reviewed, and any
potential conflicts of interest are dealt with following formal
procedures.
Paul Walker was appointed as Chair of the Board on 1 March 2021,
as announced in September 2020. Mr Walker’s independence was
determined by the initial assessment at the time of the
announcement, which the Board reviewed and confirmed
immediately prior to the appointment.
Matters reserved for the Board
There is a clearly defined schedule of matters reserved for the
Board’s decision-making, through which it has sole authority
to approve RELX’s strategy and annual budget, ensuring that
necessary resources are in place for RELX to meet its objectives.
It also sets supporting financial and non-financial targets, and
makes decisions over other matters which are deemed material
to either the delivery of strategy, or RELX’s future financial
performance. These include the approval of material acquisitions,
major capital expenditure and investment, RELX’s financial
statements and its dividend policy.
Delegated authorities and Board Committees
There are a number of approved delegated authorities in place
from the Board to the Chief Executive Officer and other Senior
Executives which relate principally to the day-to-day management
of the business. The senior management team supports the
Chief Executive Officer in the performance of his duties.
Further delegated authorities and rules are applicable to each
business area.
www.relx.com.
The governance framework also enables the Board to delegate
a number of other responsibilities to its principal Committees,
allowing it time to focus on key matters. The responsibilities
are set out within the Terms of Reference for each Committee,
which can be found on our website at
The membership and activities of the Committees are described
on pages 89, and 97 to 124. Our Committees support the Board
in delivering RELX’s strategy. The work of the Remuneration
Committee ensures that our executive and senior management
teams are appropriately incentivised to deliver RELX’s strategic
objectives, that we can retain our best talent to deliver these, and
that variable remuneration is based on the foundational principle
of pay for performance. Our Nominations Committee regularly
reviews the composition of the Board and the Committees,
ensuring that they have the right balance of skills to set an
effective strategy, and provide appropriate levels of constructive
challenge and oversight of management in implementing its
delivery. It is also responsible for ensuring that there is a healthy
and diverse pipeline of talent in place for those positions deemed
critical to the delivery of RELX’s strategic objectives.
The Audit Committee, through reports from management,
internal audit and the external auditor, provides independent
assurance that business processes which underpin the delivery of
our strategy operate as intended, are fit for purpose, and generate
reliable management information. This ensures that decisions
made by the Board in respect of strategy are taken on the basis of
correct information and assumptions. The Audit Committee also
reviews the process by which risks to the delivery of strategy are
continuously monitored, assessed and mitigated. The Corporate
Governance Committee develops and recommends a set of
corporate governance principles to apply to the Company,
through its monitoring of developments and evolving best
practices in the area, thereby assisting the Board in fulfilling
its responsibilities effectively.
RELX Annual report and financial statements 2021 | Corporate Governance ReviewMarket segmentsGovernanceFinancial statements and other informationFinancial reviewCorporate ResponsibilityOverview 80
Board Committees
The structure of the Board’s main Committees and a summary of their key responsibilities are set out below. All of the Committees
have written Terms of Reference, which are available on our website,
www.relx.com.
Board Committees are principally supported by the Chief Executive Officer, Chief Financial Officer, Chief Legal Officer and
Company Secretary, and the Chief Human Resources Officer, although senior managers within the Group are invited to attend
meetings where appropriate. The Board’s annual programme and the agendas for the Committees are prepared by their
respective Chairs with support from the Company Secretary.
The Board
Audit Committee
Responsible for the oversight
of financial reporting, risk
management and internal
control policies, and the
effectiveness of the internal
and external audit processes.
The Committee comprises only
independent Non-Executive
Directors.
Remuneration Committee
Responsible for approving the
Remuneration Policy for, and
setting the remuneration of,
the Group’s Executive Directors,
the Chair, and Senior Executives
below Board level. The
Committee comprises only
Non-Executive Directors.
Nominations Committee
Responsible for keeping under
review the composition of the
Board and its Committees; the
recruitment of new Directors;
ensuring orderly succession
plans for both the Board
and senior management;
and overseeing the Board
evaluation, and reporting on
inclusion and diversity. The
Committee comprises only
Non-Executive Directors.
Corporate Governance
Committee
Responsible for developing
and recommending corporate
governance principles to the
Board; reviewing ongoing
developments and best practice
in corporate governance,
and monitoring the structure
and operation of the Board
Committees. The Committee
comprises only Non-Executive
Directors.
Report of the Audit
Committee page 122
Directors’ Remuneration
Report page 100
Report of the Nominations
Committee page 97
Culture and workforce policies
Culture
RELX places significant emphasis and importance on the way it
does business. We are clear and unequivocal on our commitment
to do so with integrity and in accordance with the highest ethical
standards, whilst emphasising corporate responsibility and
advancing inclusiveness and diversity. We do this whilst improving
customer outcomes through a culture which is fact-based,
data-driven and analytical. Our culture supports our purpose and
strategy as set out on page 78. The Board’s activities during the
year involved it reviewing and providing direction on the Group’s
culture, and then allowed it to assess whether the culture that it
set for the organisation, is embedded and reflected across RELX
on a day-to-day basis. In 2021, the Board reviewed the results of
RELX’s triennial group-wide employee opinion survey which
confirmed positive trends across all business areas, in the key
metrics of engagement, satisfaction, commitment and employee
net promoter scores. It also reviewed and approved an updated
Ethics Code, which sets out the core standards and principles
which the organisation expects those who represent it in the
conduct of business to adhere to, and provides clear and tangible
direction and guidance to those individuals in building and
maintaining the desired culture of the Group.
The Board additionally reviewed the Group’s workforce policies
and practices. Please see pages 80 to 81 for more details.
The Board itself helps to build the culture of the organisation from
the top downwards, by ensuring that its method of decision-
making and related outcomes are aligned with the culture it has
set for the rest of the organisation. Presentations it has received
from senior management during the year have consistently
addressed RELX’s corporate responsibility activities, provided
culture-related employee data from across the Group’s different
business areas, and provided evidence that operations and
decisions made across the Group are appropriately supported by
facts, data and analysis. These have not only allowed the Board to
assess the Group’s culture, but have also provided a basis on
which it has taken a number of its principal decisions during the
year. Through the activities of the Audit Committee, the Board has
also received periodic updates from RELX’s Chief Compliance
Officer on alleged and substantiated violations of the Ethics Code,
and related training, monitoring and communications
programmes. The updates also covered the volume, type and
circumstances surrounding substantiated violations, actions and
lessons learnt.
RELX Annual report and financial statements 2021 | Governance
81
The Head of Internal Audit and Risk Management regularly
presents to the Audit Committee on the results of internal
audits across our business areas, providing the Board with an
insight into culture both across the Group and within individual
business areas.
Following its review of RELX’s culture, the Board was able to
satisfy itself that this supported and was aligned with our purpose,
strategy and values. A summary of each can be found on page 78.
In its assessment, the Board noted and acknowledged that whilst
RELX’s standards and values are defined on a group-wide basis,
culture across its business areas and geographies varies to
some degree.
Workforce policies and practices
The Board understands that RELX needs the contributions
of people from a wide range of backgrounds, with different
experiences and ideas to achieve real innovation for our
customers around the world. Reflecting this, RELX’s approach
to inclusion and diversity remains one of the key areas the Board
considers as a priority. The Board reviewed and determined that
the RELX Inclusion and Diversity Policy, adopted in early 2020,
remains appropriate to define and guide RELX’s approach in this
area. It also reviewed RELX’s activities to promote inclusiveness
and diversity in the workplace, and its 2022 objectives in areas
such as inclusive leadership training, disability inclusion and
gender balance. For more details on the Company’s approach to
investing in and rewarding its workforce, please see pages 49 to
50 within the Corporate Responsibility Report.
During the year, the Board received a presentation summarising
data on our workforce, such as levels of employee engagement,
voluntary and involuntary employee turnover, and demographics
by location, division, gender, tenure, age, and ethnicity (where data
is available, representing 60% of our employees); and reviewed
our policies and practices relating to recruitment, talent
development and remuneration, in order to ensure that these are
consistent with our values and support our long-term sustainable
success. The Board was also provided with the results of
employee surveys conducted across the Group’s business areas
and in different geographic regions during the year, covering
various topics including employee perspectives on RELX’s culture
and its approach to inclusion and diversity, as well as feedback on
arrangements made to accommodate the impact of the Covid-19
pandemic and related company communication. The Board also
reviewed findings of our triennial Employee Opinion Survey,
including breakdown by business areas. These surveys showed
high level of satisfaction and engagement. The Board was also
informed on how the management of each business area reflected
feedback received in considering post-pandemic working
arrangements and gradual return to the offices (where
applicable), taking into consideration local circumstances.
Please see page 85 for more details on post-pandemic working
arrangements. Detailed feedback was also provided to the Board
from RELX’s Workforce Engagement Director on employee views
and perspectives regarding how RELX operates, including its
activities and culture. Further details on the Workforce
Engagement programme and its outcomes can be found on
page 85.
Board decision-making
The Act requires that the Directors of RELX PLC – and those of all
UK companies – act in a way that promotes the success of the
Company for the benefit of its members as a whole. In so doing the
Directors must have regard to the matters set out in Section 172(1)
(a) to (f) of the Act.
This includes the likely consequences of any decision in the long
term; the desirability of maintaining a reputation for high
standards of business conduct; and the need to act fairly as
between members of the Company. The information which follows
on pages 81 to 88 describes how, in performing their duties during
the year, the Directors have had regard to the matters set out in
Section 172(1) (a) to (f) of the Act. This section is incorporated by
reference into the RELX 2021 Section 172 Statement on page 39 of
the Strategic Report.
Although day-to-day management and decision-making are
delegated to the senior management team, the Board maintains
oversight of the Company’s performance, and reserves to itself
specific matters for approval, including significant new business
initiatives, and major acquisitions and disposals. There are
processes in place to ensure that the Board receives all relevant
information at the right time and with the appropriate level of
detail to enable the Board to monitor that management is acting in
accordance with agreed strategy. In addition, as described on
pages 78 to 79, the Board’s annual programme is designed to
assist in enhancing its understanding of RELX’s business areas.
The Board’s activities and key decisions made in 2021 are
described below.
Purpose, vision and strategy
§ Received regular presentations on RELX’s business areas
from the business area CEOs, which included reviews and
discussion over actual and estimated full-year outturns based on
multiple scenarios, incorporating short-, medium- and long-term
variables within the business environment and the wider global
economy. Particular consideration was given to the pace and
sequencing of reopening for exhibitions events following the
impact of Covid-19, subscription renewal rates within the Legal
business and transactional volume in the Risk business
§ Through ongoing discussion with the business area leaders
and the Chief Strategy Officer, determined strategic priorities
for a three-year period, and the development of robust
supporting operating plans. A two-day Strategy Review was
held in September 2021 to debate and determine a three-year
strategy plan for 2022-2024. Strategic priorities for organic
growth, capital expenditure and areas for potential
acquisitions across all four business areas were reviewed
§ Considered and approved an updated Purpose, Strategy,
Values and Culture statement, as set out on page 78
§ Considered and approved the budget for 2021, and tracked
financial performance throughout the year
§ Received a comprehensive update on developments, future
plans and particular focus areas for the Group in respect of
emerging technologies, including from the RELX Chief
Technology Officers Forum, which plays a vital role in ensuring
that the Group’s technology appropriately evolves and
supports its ongoing development of more sophisticated
analytics and decision tools for customers
RELX Annual report and financial statements 2021 | Corporate Governance ReviewMarket segmentsGovernanceFinancial statements and other informationFinancial reviewCorporate ResponsibilityOverview 82
§ Conducted comprehensive reviews of the Group’s invested
capital and capital structure. This embraced financial
performance, completed acquisitions, potential acquisitions,
net debt, returns on invested capital, credit ratings, forecasts,
and financial market conditions
§ Following a detailed review of the Group’s borrowing limits,
liquidity, net debt/EBITDA position, debt covenant compliance
and budget and capital allocation forecasts, approved RELX’s
going concern statement (as set out on page 95) and viability
statement (as set out on page 96). In doing so, the Board
continued to examine throughout the year a range of scenarios
reflecting the potential impact of the ongoing Covid-19
pandemic on each business area, in particular Exhibitions, and
the Group as a whole, to ensure that the Company maintained a
strong cash and liquidity position, concluding that no additional
debt fundings were required by the Group
§ Considered and approved a number of acquisition and disposal
proposals, including the acquisition of TruNarrative, which has
supplemented the Risk division’s financial crime compliance
and fraud solutions and is part of its portfolio that allows
customers to make real time financial compliance decisions. In
doing so, the Board carefully reviewed the strategic rationale
for each of the proposals and the value forecasted to be added
to RELX by them over a defined period of time. It also conducted
an annual acquisition review process in which historical
acquisitions are reviewed including their financial
performance and strategic value
§ Reviewed recruitment priorities for 2021 and 2022, and
progress made in respect of talent development for the year.
In doing so, the Board reviewed employee attrition levels within
each business area, examined a number of inclusion and
diversity related data points (gender, ethnicity, national origin,
among others) within key geographies of the Group, as well as
the results of pay equity audits conducted during the year
§ Made the decision not to resume the Group’s share buyback
programme for 2021. Following the initial suspension of the
programme in April 2020, due to the uncertain business
environment created by the Covid-19 pandemic, the Board
continued to review the decision throughout the year and
determined that it is appropriate to resume the programme in
2022. In 2022, we intend to deploy £500m on share buybacks
§ Received a presentation from Head of Corporate
Communications on focus areas for 2021, in order to effectively
deliver the Company’s core messages to target audiences
Risk and Internal Control
§ Considered RELX’s principal and emerging risks and
mitigation strategies, through the work of the Audit Committee
and periodic updates received from Head of Audit and Risk
Management. The Board confirmed that the Group’s principal
risks previously identified remain largely unchanged, while
also updating several of them to reflect recent developments.
For instance, the medium-term impact of the Covid-19
pandemic to face-to-face events, and the risk related to the
potential impact of more extreme weather events related to
climate change has been included, as shown on pages 66 to 69
§ Reviewed RELX’s data protection systems and processes to
mitigate against cyber security risks, including a
comprehensive presentation on cyber security from the Group
Head of Information Assurance and Data Protection, covering
the industry threat landscape, its implications to RELX and the
mapping of RELX’s cyber security programme to address
those risks; a detailed review of the key performance indicators
for the cyber security programme; and both company-wide and
operating division-specific initiatives for 2021
§ Through the Audit Committee, received periodic updates from
RELX’s Chief Compliance Officer on RELX’s compliance efforts
with respect to privacy, trade sanctions, anti-bribery and
intellectual property
§ Received through the Audit Committee a detailed overview
of the Group’s insurance programme from the Group Treasurer
and the Head of Group Insurance & Risk, which included a
review and discussion of the Group’s insurance strategy
Board and senior management succession
§ Considered Board succession planning and the resultant
impact on Committee memberships. For the changes of
Committee memberships, please see page 89
§ Approved the re-appointment of Marike van Lier Lels as a
Non-Executive Director for a third three-year term with effect
from 21 July 2021, after taking into account the latest Board
Evaluation which concluded that her performance as a
Non-Executive Director had been effective and she had
demonstrated continued commitment to her role
§ Through the work of the Remuneration Committee, reviewed
remuneration for the Executive Directors and Senior
Executives, to ensure that both short- and long-term incentives
are aligned with Company and stakeholder interests, and
Company values and culture
§ Received updates on internal talent reviews, career
progression plans and management succession plans, which
contribute towards building leadership capabilities and solid
succession pipelines, as well as a detailed analysis over the
Group’s demographics both from a gender and a geographic
perspective. The Board was also kept informed, through
the Nominations Committee, on the progress of selection
processes for key management positions, including the
appointment of Rose Thomson as Chief Human Resources
Officer in September 2021
Culture, values and ethics
§ Conducted a triennial review of, and approved, a revised and
updated Ethics Code, which adds particular emphasis on
manager responsibility to lead with respect to the Code’s
principles and ethical standards. The revised Ethics Code was
also redesigned for improved accessibility, and expanded
resources were included
§ Reviewed and approved a group-wide Inclusion and Diversity
Policy, and monitored its implementation. Through the work of
the Workforce Engagement Director, the Board also received
updates on workforce engagement activities globally, which
aim to further develop a motivated and aligned workforce.
For more details, please see page 85
RELX Annual report and financial statements 2021 | Governance 83
§ Approved the Company’s Modern Slavery Act Statement
describing the steps it had taken to ensure that slavery and
human trafficking were not taking place in the context of the
Company’s activities carried out in 2021
§ Considered and approved our RELX Tax Principles that support
our culture of acting with integrity in all that we do
§ Received a presentation from the Chief Compliance Officer
on the process in place through which RELX employees can
confidentially (and anonymously should they so choose) submit
concerns to the Company. These include, but are not limited to,
breaches of the Code of Ethics and Business Conduct
Environmental, Social and Governance (ESG)
§ Considered and approved the Corporate responsibility
overview, as set out on pages 39 to 58, as well as the RELX
Corporate Responsibility Report 2021 (www.relx.com/go/
crreport)
§ Received comprehensive updates on RELX’s corporate
responsibility activities from the Group Head of Corporate
Responsibility, including performance on the 2021 corporate
responsibility objectives, encompassing:
§ the Company’s advance of the United Nations Sustainable
Development Goals (SDG) which included increasing
content and unique users of the free RELX SDG Resource
Centre, holding the fifth SDG Inspiration Day event and
second SDG customer awards
§ the efforts made in advancing inclusion and diversity
across RELX
§ the promotion of an ethical supply chain
§ employee initiatives supporting local communities across
§ Considered the Company’s action on climate change as part of
its commitment to progressing the UN’s SDG goals. It reviewed
and approved its TCFD statement (please see page 55, and
Appendix 4 of the Corporate Responsibility Report for more
detail) and maintained a focus on ensuring carbon reductions
in line with the Paris Agreement’s aim to limit global warming
to 1.5 °C above pre-industrial levels. The Board also endorsed:
§ RELX’s carbon emissions targets. Reductions in 2021
reflect the effects of the global pandemic but are part of a
longer-run reduction trajectory
§ the Company’s focus on delivering products and offerings
that contributed to accelerating climate action, such as
improved carbon tracking in the aviation industry through
Cirium (Risk business), Pathways to Net Zero report (STM
business), extensive environment law information and
news to advise the legal community on environmental
regimes, legislation and other developments (Legal
business), and Dcarbonise Week Virtual Summit
(Exhibitions business)
§ the purchase of renewable energy and renewable energy
certificates, with the balance offset through high-quality,
certified offsets
§ the Company becoming a signatory of The Climate Pledge
with the aim of becoming net zero no later than 2040 across
all three scopes
Governance and shareholder matters
§ Approved, as part of the 2021 Annual Report and Financial
Statements process, statements describing how the Company
had applied the principles of the Code during the year
§ Approved, as appropriate, actual and potential Directors’
the world
conflicts of interest
§ the ongoing focus on climate action including carbon
§ Reflecting its confidence in the growth prospects of the
reduction and offsetting, and the Company’s Task Force for
Climate-related Financial Disclosures (TCFD) statement
(see further detail below)
§ the alignment with the Sustainability Accounting Standards
Board (SASB) (see page 58)
§ the increased focus on workforce engagement
§ updates to RELX’s Modern Slavery Act Statement, which
was reviewed and approved by the Board
§ the Group’s ratings and standings in ESG indices and its
engagement with investors on RELX’s ESG performance,
including its first investor corporate responsibility teach-in
§ Considered the engagement activities undertaken with RELX’s
key stakeholders as set out on pages 84 to 88
§ Received updates on the progress that had been made in
meeting the Company’s 2021 Socially Responsible Supplier
objectives, including the number of signatories to the RELX
Supplier Code of Conduct
Company, the Board declared an increased interim dividend of
14.3p per share, and an increased final dividend for 2021 of
35.5p per share. In doing so, it carefully considered various
scenarios and factors, including trading conditions, balance
sheet strength, short- and medium-term liquidity, cash flow
requirements and feedback from investors on dividend
expectations
§ Held the 2021 AGM as a closed meeting, similar to the 2020
AGM, taking into consideration the guidance of the UK
government in place at the time, and wider safety
considerations. The meeting was held on 22 April 2021 with the
minimum quorum of two attendees, while voting was
conducted by proxy. Recognising the importance of the
opportunity for shareholders to interact with Directors, an
audiocast was held, in which the Chair, Paul Walker, responded
to questions received by shareholders prior to the AGM
§ Received regular investor relations updates and feedback from
investors through direct engagements. For more details,
please see Investors section on page 84
RELX Annual report and financial statements 2021 | Corporate Governance ReviewMarket segmentsGovernanceFinancial statements and other informationFinancial reviewCorporate ResponsibilityOverview 84
Stakeholder engagement
During the year, the Board considered our key stakeholders and concluded that our existing list of key stakeholders remains unchanged,
as set out below. It had also received a detailed overview about engagement channels and activities the Company has with each of them,
and confirmed that it has adequate visibility of the views of key stakeholders which then are taken into consideration in its decision-
making. Further detail on the nature and results of RELX’s engagement with its key stakeholders is included throughout our 2021
Corporate Responsibility Report (www.relx.com/go/crreport).
Stakeholder: Investors
Why effective
engagement is
important:
Engagement with our investors helps them to understand our strategy, performance and governance
arrangements, and to make informed and effective investment decisions concerning RELX. It also makes clear our
prioritisation of the long-term in our decision-making and focus on delivery of consistent financial performance.
Our investors provide us with input and feedback concerning the development and implementation of our strategy,
and we consider their views when making investment decisions.
Principal forms of
engagement with
our investors in
2021, the outcomes
of this engagement,
how this is fed back
to the Board, and
how it impacted
Board decision-
making in 2021:
Engagement with our investors is undertaken by the Chair, the Senior Independent Director, Chief Executive
Officer, Chief Financial Officer, Head of Investor Relations and the Director of Corporate Responsibility, as well
as through our dedicated Investor Relations, Corporate Responsibility and Treasury teams. The Board receives
regular updates on these interactions, which include key issues raised by investors, and discussions and
outcomes from the completion of investor roadshows and ad hoc meetings with institutional shareholders on
significant issues and our recent and proposed activities. The Board also receives an update on investor relations
as a standing item at its meetings which includes: the Group’s share price and shareholder return performance,
a review of analyst comments made in response to our scheduled results releases and updates on the
shareholder register.
RELX’s material communications to its investors, such as its trading results and updates, other regulatory
announcements, our Annual Report and Financial Statements and Notice of AGM must be reviewed and approved
by the Board under our corporate governance framework. As a result of the Covid-19 pandemic, the Board offered
shareholders the opportunity to submit questions prior to the 2021 AGM taking place. A number of questions were
received and answered during the Chair’s audiocast on the day of the meeting. Our engagement processes
confirmed that RELX’s strategic and financial priorities are well understood by investors. In the main, investors
appreciate the consistency of RELX’s strategy, and focus on the organic development of information-based
analytics and decision tools that deliver enhanced value to our professional and business customers. The Board
considered this when approving the RELX three-year strategy plan for 2022-2024, which leaves our strategic
focus, and our priorities for uses of cash generated by the Group, broadly unchanged. In May 2021, we held a virtual
investor event focused on corporate responsibility at RELX, which was joined live by close to 90 investors and
analysts and received positive feedback. Presentations covered RELX’s overall approach to corporate
responsibility as well as its unique contributions with three case studies: (1) our Scientific, Technical & Medical
(STM) business area’s response to Covid-19, (2) our Risk business area’s initiative to deliver increased financial
inclusion, and (3) our Legal business area’s efforts to promote Rule of Law and access to justice. The presentation
www.relx.com/investors. In October and November 2021 respectively, our Risk
and webcast are available on
and Legal businesses hosted virtual investor seminars , both of which were well attended by our major
shareholders, and received favourable feedback.
The Board also considered investor views on strategy when approving investment decisions, including those
relating to new or emerging technologies, or acquisitions which were completed in 2021. Our investors vary
substantially in their reasons for investing in RELX and in their appetite for risk. The Board considered these
differing interests in its decision-making during the year.
In respect of shareholder returns, the Board considered a range of investor and analyst views, balancing the
impact of returns with stakeholder interests in other key RELX financial metrics. As a result of its deliberations,
the Board declared a 2020 final dividend of 33.4p per share, to deliver a total 2020 dividend of 47.0p (an increase of
3% on 2019), and a 2021 interim dividend of 14.3p per share (an increase of 5% on the prior year interim dividend).
The Group’s share buyback programme, having completed £150m of the £400m initially approved at the beginning
of 2020, was suspended in April 2020 and did not resume in 2021.
The Board has also considered the views of the wider investment community when approving areas of focus for
RELX’s ESG activities, including actions that RELX can take to mitigate the impact of climate change.
RELX Annual report and financial statements 2021 | Governance 85
Stakeholder: Employees
Why effective
engagement is
important:
Principal forms of
engagement with
our employees in
2021, the outcomes
of this engagement,
how this is fed back
to the Board, and
how it impacted
Board decision-
making in 2021:
Our people are essential to our future growth, and our aim to successfully build long-term leading positions in global
growth markets. We continue to invest substantial time and effort to employ and retain employees who are
passionate about our markets and have up-to-date knowledge and world-class expertise in our key functional areas.
An inability to recruit, motivate and retain skilled employees and management could adversely affect our business
performance, as we compete globally and across business sectors for talented management and skilled individuals,
particularly those with technology and data analytics capabilities. Talent is set out as a RELX principal risk on page
68. Our mitigation of this risk is partly achieved through actively seeking feedback from employees, understanding
their key challenges and concerns, and where we can, working with them to address these.
Engagement with employees at all levels takes place as a result of the management structure embedded
throughout RELX, with employee feedback then cascaded up through management levels, and significant issues
relayed to the Board by the Executive Directors and the RELX business area CEOs. Engagement also takes place
with our workforce on behalf of the Board and the Company through our Workforce Engagement Director, Chief
Human Resources Officer and Senior HR Leadership Team.
The Workforce Engagement Director provided updates to the Board on engagement processes, findings and
outcomes. Marike van Lier Lels was appointed as the Workforce Engagement Director in January 2019, due to her
previous experience in this area as a director responsible for employee representation in the Netherlands, and her
balance of independence and knowledge of the Group, having joined the Board as a Non-Executive Director of RELX
PLC in 2015. Ms van Lier Lels continued in the role in 2021. She met with European, US and Asia-Pacific workforce
representatives and employee panels. Engagement activities were held virtually due to the continued travel
restrictions as a result of the pandemic. In order to facilitate some of these meetings, recognising the additional
challenges of engaging virtually, online questionnaires were sent to employees in advance (including questions
concerning support received during the pandemic, flexible working, career development, and inclusion and
diversity), with aggregated anonymised responses shared with the Workforce Engagement Director and the
relevant employee group to generate points for discussion and ensure the views of all participants could be heard.
Feedback is used as part of Board and management decision-making. The Board was pleased to see that employees
continue to feel well supported and engaged. As many employees continue to work from home, RELX continued to
make significant additional online support resources available, covering areas such as stress management, mental
well-being, business continuity, remote working guidance, and physical fitness.
Feedback from employees on working from home and flexible working more generally is being taken into account in
policies that are being developed and were reviewed by the Board in 2021. Some of our offices are already operating
flexibly, but we are not through the pandemic yet. In geographies where the situation is improving, return to the office
is planned but managed flexibly given the evolving environment. Messages on this have been sent from business
area CEOs to their employees.
Responding to the increasing desire for employees to have greater visibility of career development opportunities,
career frameworks have been launched to help guide career development in business critical areas such as data,
research and analytics. These frameworks allow employees to understand the skills and competencies on which
they need to focus to progress in their chosen area. In 2021, we continued our detailed assessment of high-
performing talent and detailed succession planning across RELX. Over 1,000 employees were considered across
divisions, functions and operational areas. This year’s process had a significant focus on inclusion and diversity,
ensuring that the widest range of employees were highlighted in discussions.
In response to employee feedback regarding initiatives that create an inclusive and diverse workplace, the Board
supported the launch of the RELX-wide Equality Allyship programme for Gender, Disability, Race & Ethnicity, PRIDE
and Generations. In addition, tools to debias job adverts and enhance competence-based interviewing and inclusive
selection were further developed. Apprenticeships, internships, and return to work programmes were also used to
support our inclusion initiatives.
A triennial global Employee Opinion Survey was conducted in September 2021. Each of RELX’s business areas also
conducted regular pulse surveys during the year. Business area leaders presented the results of these surveys. The
Board reviewed an update on workforce policies and practices, and received summary information on employee
demographics by location, gender, tenure, age, and ethnicity where data is available (representing 60% of our
employees). Employee attrition, inclusion and diversity activities in 2021 and goals for 2022, recruitment activities
in 2021 and goals for 2022, talent development activities, and remuneration were also considered by the Board.
As a regular agenda item, the Board reviews group-wide communications to employees, and considered an update
from the Chief Compliance Officer on reports submitted by employees, in confidence, on potential breaches of
RELX-approved policies or procedures.
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Stakeholder: Customers
Why effective
engagement is
important:
Principal forms of
engagement with
our customers in
2021, the outcomes
of this engagement,
how this is fed back
to the Board, and
how it impacted
Board decision-
making in 2021:
Our goal is to help customers make better decisions, get better results and be more productive. We do this by
leveraging a deep understanding of their needs and views to create innovative solutions, which combine content
and data with analytics and technology in global platforms. Collaborating closely with our customers allows us to
understand where and how we can improve the quality of our services and products, and ensures that we make
accurate and targeted investment decisions (such as developing new or emerging technologies or complementing
our existing capabilities through acquisition activity). Customer acceptance of products is set out as a principal risk
on page 67. Regular engagement with our customers has also remained extremely important at a time when many
have been affected, to varying degrees, by Covid-19.
Our engagement with customers during the year took place mainly at an operational level within our business
areas through face-to-face (subject to local regulation) and virtual meetings, customer training and workshops,
ongoing dialogue through our dedicated sales and operations teams, customer relationship managers, and in
respect of material customer issues, through our business area senior management teams. The Board received a
number of presentations during the year from customer-facing employees which detailed the nature of our
customer engagement and the actions taken by the business areas as a result. In particular, in 2021 the Board
received regular reports from senior management on the issues impacting our key customers including the
ongoing impact of Covid-19, and analysis by sector and geography, and their current and anticipated future demand
for our products and services. The Board also received feedback concerning the resilience of the markets that we
operate in, and the pace of their recovery and growth. In addition, the Board reviewed customer survey data, Net
Promoter Scores, and customer usage volumes across our business areas. There were few Board decisions made
during the year which were not directly or indirectly linked to the future needs of our customers, or which resulted
from their past and present demand for our products. Engagement with our customers confirmed that there is
significant disparity in the extent to which they have been affected by Covid-19. The engagement feedback provided
has assisted the Board in maintaining its understanding of customer and market trends, issues and likely future
needs, and how these can be addressed.
The feedback was considered as part of Board strategy-related discussions during the year, and it will be reviewed
for all business areas as part of the Board’s approval of the three-year strategy plan for 2022-2024. Feedback from
our customers also helped the Board and management to assess at what pace and in which areas RELX should
build out new products and services, and where it should look to expand into higher growth adjacencies and
geographies over varying time horizons. Customer demand impacts our financial performance and was also
considered by the Board in setting appropriate financial targets for 2021, assessing the amount of investment
required for RELX to be able to meet its customers’ current and future needs, and for RELX to grow its customer
base and market share across its business areas. It also helped management and the Board recognise and identify
areas requiring cost rationalisation.
Customer-related views, behaviours and profiles also assisted management and the Board in considering
selected acquisitions of targeted data sets, analytics and assets in high-growth markets that support high-growth
strategies, and which are natural additions to our existing businesses. As a result of these reviews, areas were
identified in which potential acquisitions could supplement our customer offerings in certain sectors. For example,
in August 2021, the Board considered and approved the acquisition by the Risk business of TruNarrative, a
UK-based provider of a unified risk platform used in onboarding, KYC, AML transaction monitoring and fraud,
which complements Risk’s existing offerings in Financial Crime Compliance and Fraud & Identity.
RELX Annual report and financial statements 2021 | Governance 87
Stakeholder: Suppliers
Why effective
engagement is
important:
Principal forms of
engagement with
our suppliers in
2021, the outcomes
of this engagement,
how this is fed back
to the Board, and
how it impacted
Board decision-
making in 2021:
RELX has a diverse supply chain with suppliers located in over 150 countries across multiple categories. Our
content suppliers are critically important to our business, as they provide scientific and medical content, legal
information and risk-related data and analytics content which is used as part of our customer offering, mainly by
our STM, Legal and Risk businesses. They include authors, editors, content reviewers and product designers.
An inability to source sufficient volume or quality of products/services from these suppliers, including as a result
of insufficient dialogue or collaboration with them, may impact customer acceptance of products (which is set out
as a RELX principal strategic risk on page 67). Our non-content suppliers represent more typical vendor-type
relationships, such as IT software and cloud service providers, or third parties to whom we have outsourced support
function activities. Poor performance, failure or breach of their contractual obligations by them could impact our
ability to provide services to our customers, or result in other issues adversely impacting our business performance,
reputation and financial condition.
Collaboration and two-way dialogue with our suppliers helps ensure that we are able to maintain and improve the
quality of products and services we provide to our customers. Effective engagement also underpins our ability to
maintain an ethical supply chain, giving us visibility of our suppliers’ commitment to good practices, transparency
and openness. Supply chain dependencies and ethics are set out as RELX principal risks on pages 68 and 69.
Through engagement it is important that we can make clear the needs and expectations of our customers, listen to
and understand the suggestions and concerns of our suppliers, collaborate with them, and help them to achieve
standards and behaviours that will build confidence and trust with RELX and its customers.
Engagement with our content suppliers takes place principally through the relevant business area to which the
content is provided. Content supplier feedback is collected through direct relationships and regular business
reviews, and Net Promoter Scores from STM journal authors, editors and reviewers. This feedback was presented
to the Board as part of updates by our business area leaders, who have responsibility for these relationships and
the contribution that they make towards implementing our strategy, and also our Chief Strategy Officer as part of a
specific Board agenda item related to content suppliers. The Board incorporated feedback from our content
suppliers when discussing and approving our three-year strategy plan, as well as considering and assessing
investment decisions, and mitigations in place for our principal risks of customer acceptance of products and
supply chain dependencies.
Additionally, the Board received an annual update by the Global Head of Purchasing & Property on non-content
supplier relationships including supplier spend trends by category, progress on our Socially Responsible Supplier
(SRS) programme, and the results from supplier satisfaction surveys which cover a wide range of areas such as
payment timelines, communication, technology infrastructure, feedback, collaboration, vision and innovation. In
2021 RELX significantly expanded its supplier survey programme, with surveys distributed to 120 suppliers, and
management has taken action to address where lower scores have been received. RELX scored particularly well
across areas such as problem identification and resolution, contracting, communication and collaboration. Scores
in project management and order effectiveness, the areas our 2020 survey identified as requiring improvement,
improved and scored notably higher than the benchmark.
Our Supplier Code of Conduct is made available to each supplier and translated into 16 languages for use on a
global basis. As a result of continuing engagement, 99% of our core suppliers are now signatories to our Supplier
Code of Conduct. A specialist supply chain auditor helps provide independent assurance to both RELX and its
suppliers that the standards and values which we have both agreed at the beginning of our contractual relationship,
are being met. Where this is not the case, RELX assists our suppliers in developing remediation plans for
implementation to help develop compliance in required areas. Our suppliers are then given the opportunity
post-audit, through the completion of a survey, to provide feedback on whether they believed the audit was
effective, fair and how, in their view, it could be improved. The high-level results of related audits were reviewed by
the Board.
Engagement with our suppliers also informed the Board’s discussions relating to our ethics principal risk, and
assessment of the processes in place to mitigate against this. Feedback from suppliers generally indicated that our
supply chain audits assisted them in reviewing their existing practices, and ensuring that these were fit for
purpose. The Board’s review of the SRS programme helped it to understand and assess the adequacy of the
controls in place to ensure an ethical supply chain and also informed its decision to approve the Group’s 2021
Modern Slavery Act Statement.
RELX Annual report and financial statements 2021 | Corporate Governance ReviewMarket segmentsGovernanceFinancial statements and other informationFinancial reviewCorporate ResponsibilityOverview 88
Stakeholder: Community
Why effective
engagement is
important:
Our focus on community includes those where we, our customers and suppliers work around the world, as well
as the communities we serve, including in science, academia, risk, law and many other fields. We prioritise
positive dialogue with our community stakeholders; they collectively provide our ‘licence to operate’. Our efforts
are informed by our commitment to the United Nations Global Compact and its ten principles focused on human
rights, labour, the environment and anti-corruption – all issues with wide societal impact.
Principal forms of
engagement with
our community in
2021, the outcomes
of this engagement,
how this is fed back
to the Board, and
how it impacted
Board decision-
making in 2021:
We contribute to our communities through our unique contributions to society (see pages 41 to 45), and through a
comprehensive global community programme, RELX Cares. The RELX Cares mission is education for
disadvantaged young people that aligns with our unique contributions including promoting science and health,
protection of society, the Rule of Law and access to justice and fostering communities. RELX Cares promotes
employee volunteering and each year staff have two days paid leave in order to undertake community work. A
network of over 220 RELX Cares Champions across the Group ensures the vibrancy of this community
engagement. In 2021, 10,362 days have been volunteered in company time, in comparison to 6,821 last year, an
increase of 52%.
RELX Cares also features philanthropic giving for beneficiaries that align with the RELX Cares mission. In 2021, we
donated over $335k through our central grants programme, which includes donations in response to disasters and
emergences, including to help with the response to Covid-19 in India, hurricane relief efforts in Haiti and the United
States, and to advance UNICEF’s work on the ground in Afghanistan.
In accordance with the Business for Societal Impact model, we monitor the short- and long-term benefit of our
community engagement. To increase transparency and awareness, we ask beneficiaries to report on their
progress, sharing feedback on a RELX Cares section of our corporate internet. In addition, we survey RELX Cares
volunteers to understand the impact of the programme on their personal development and how it affects the way
they feel about working at RELX.
We have also made scientific articles, data and news, useful in the fight against coronavirus, freely available on the
RELX SDG Resource Centre. These included Elsevier’s Novel Coronavirus Centre with the latest medical and
scientific information on Covid-19; LexisNexis Risk Solutions’ data set and interactive visualisations that provide
insights on vulnerable populations and care capacity risks; and LexisNexis Legal & Professional’s coronavirus
global media and news tracker with interactive charts.
In addition, LexisNexis Risk Solutions is advancing pilots using its tools to help qualified citizens gain access to
credit in Latin America. Elsevier is a founding partner and leading contributor to Research4Life, providing a
quarter of the material available. In 2021, there were over 1m Research4Life downloads from ScienceDirect,
benefitting researchers in low- and middle-income countries. In the year, the Elsevier Foundation worked to
improve access to healthcare and science in vulnerable communities, while the LexisNexis Rule of Law Foundation
supported projects that advance access to justice including with the launch of a simplified personal independence
payment form, a digitised version of the UK government’s paper-based form for disability claims. The free tool,
available to independent legal clinics and disability claimants, enhances the chance of receiving qualifying financial
support.
Responsibility for updating the Board on community engagement sits with the Chief Executive Officer. He is
supported in this activity by the Group Head of Corporate Responsibility who in 2021 provided comprehensive
feedback on RELX Cares and other activities to the Board, including key metrics, objectives and outcomes. Board
feedback and support for community engagement shapes the direction of the programme and future plans which
include evaluating the impact of the pandemic on volunteering and new ways to promote distance volunteering.
RELX Annual report and financial statements 2021 | Governance 89
Attendance at meetings of the Board and Board Committees
The table below shows the attendance of Directors at meetings of the Board and its Committees during the year. Attendance is expressed
as the number of meetings attended out of the number eligible to be attended.
Committee appointments
Board (1)
Audit
Remuneration Nominations
Corporate
Governance
R N C
R N C
–
–
R N C
A N C
R N C
R C
A C
A C
A C
A C
6/6
1/1
7/7
7/7
7/7
7/7
7/7
7/7
7/7
7/7
7/7
7/7
–
–
–
–
3/3
–
–
4/4
4/4
1/1
4/4
3/3
1/1
–
–
4/4
–
4/4
4/4
–
–
–
–
2/2
1/1
–
–
3/3
3/3
3/3
–
–
–
–
–
5/5
0/0
–
–
5/5
5/5
5/5
5/5
5/5
5/5
5/5
5/5
Director
Paul Walker (Chair) (2)
Anthony Habgood (Chair) (3)
Erik Engstrom
Nick Luff
Wolfhart Hauser
Marike van Lier Lels (4)
Robert MacLeod
Linda Sanford
Andrew Sukawaty
Suzanne Wood
Charlotte Hogg (5)
June Felix
Board Committee membership key
A Audit
R Remuneration
N Nominations
C Corporate Governance
Committee Chair
(1) In addition to the seven scheduled meetings, serving Directors also attended two full-day strategy and business review meetings.
(2) Mr Walker was appointed as the Chair of the Board on 1 March 2021. Mr Walker was also appointed as the Chair of the Nominations and Corporate Governance Committees,
and as a member of the Remuneration Committee at that time.
(3) Sir Anthony Habgood stepped down as the Chair of the Board on 1 March 2021. Sir Anthony Habgood also stepped down as the Chair of the Nominations and Corporate
Governance Committees, and as a member of the Remuneration Committee at that time.
(4) Ms van Lier Lels stepped down as a member of the Audit Committee on 28 July 2021.
(5) Ms Hogg was appointed as a member of the Audit Committee on 28 July 2021.
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90
Division of responsibilities
Key roles of the Directors
Chair
§ Provides leadership of the Board, and is responsible
for its overall effectiveness in directing the Company
§ Ensures that all Directors are sufficiently apprised of
matters to make informed judgements, through the
provision of accurate, timely and clear information
§ Promotes high standards of corporate governance,
demonstrates objective judgement and promotes a
Board culture of openness and debate
§ Sets the agenda and chairs meetings of the Board
§ Chairs the Nominations and Corporate Governance
Committees
§ Facilitates constructive Board relations and the
effective contribution of all of the Directors
§ Ensures effective dialogue with shareholders
§ Ensures the performance of the Board, its Committees
and individual Directors is assessed annually
§ Ensures effective induction and development of Directors
Chief Executive Officer
§ Day-to-day management of the Group, within the delegated
authority limits set by the Board
§ Develops the Group’s strategy for consideration and
approval by the Board
§ Ensures that the decisions of the Board are implemented
§ Informs and advises the Chair and Nominations Committee
on executive succession planning
§ Leads communication with shareholders
§ Promotes and conducts the affairs of the Company
with the highest standards of integrity, probity and
corporate governance
Chief Financial Officer
§ Day-to-day management of the Group’s financial affairs
§ Responsible for the Group’s financial planning, reporting
and analysis
§ Ensures that a robust system of internal control and risk
management is in place
§ Maintains high-quality reporting of financial and
environmental performance internally and externally
§ Supports the Chief Executive Officer in developing
and implementing strategy
Senior Independent Director
§ Leads the Board’s annual assessment of the performance
of the Chair
§ Available to meet with shareholders on matters where
usual channels are deemed inappropriate
§ Deputises for the Chair, as necessary
§ Serves as a sounding board for the Chair and acts as an
intermediary between the other Directors, when necessary
Non-Executive Directors
§ Bring an external perspective, and constructively
challenge and provide advice to the Executive Directors
§ Effectively contribute to the development of strategy
§ Scrutinise the performance of management in
meeting agreed goals and monitor the delivery
ofthe Group’s strategy
§ Serve as members of Board Committees and chair
the Audit and Remuneration Committees
Chair and Chief Executive Officer
There is a clear separation of the roles of the Chair, who leads the Board, and the Chief Executive Officer, who is responsible for
the day-to-day management of the Group, which are set out in writing and included above. The table above also illustrates the key
responsibilities of the other Directors. This division of responsibilities, in addition to the matters reserved for the Board, Terms
of Reference for each Board Committee and delegated authorities in place from the Board to the Chief Executive Officer and other
Senior Executives which relate to the day-to-day management of the business, ensures that there are appropriate controls in place
to prevent any individual from having unfettered powers of decision.
RELX Annual report and financial statements 2021 | Governance 91
Composition, succession and evaluation
Board appointment procedure
The Company has in place a rigorous procedure for the
appointment of new Directors to the Board. This involves the
preparation of a search specification by the Nominations
Committee and the engagement of an external search firm to
identify and propose candidates based on that specification. Any
candidates will be interviewed by a number of Board members,
including the Chair and the Chief Executive Officer, and additionally
the Chief Legal Officer and Company Secretary. The candidates
are considered in detail by the Nominations Committee, and a
recommendation made to the Board regarding any Director
appointment. The Board then has a further opportunity to discuss,
and if deemed fit, approve the appointment.
The Board acknowledges the benefits that diversity can bring to
the effectiveness of Board discussions through the incorporation
of different perspectives and ideas and, as a result, the quality of
Board decision-making. In line with our Board Inclusion and
Diversity Policy, diversity is taken into consideration when
evaluating the skills, knowledge and experience desirable to fill
each Board vacancy. The Nominations Committee, in conjunction
with the full Board, will oversee plans for diversity and inclusion
and assess progress annually.
The Board may appoint Directors (subject to a maximum upper
limit) to fill a vacancy at any time, although any Director so
appointed shall only hold office until the following AGM of the
Company, at which his or her election shall be voted upon by
shareholders. Directors are then required to seek re-election by
shareholders at each AGM of the Company. The Notice of Meeting
for the 2022 AGM will set out information on the Directors standing
for election or re-election, including their biographies, skills and
key contributions, as required by the Code.
As a general rule, letters of appointment for Non-Executive
Directors provide that, subject to annual re-election by
shareholders, individuals will serve for an initial period of three
years, and are typically expected to be available to serve for a
second three-year period. If invited to do so, they may also serve
for a third period of three years. The notice period applicable to the
Non-Executive Directors is one month.
Board composition
As at the date of this Annual Report, the Board was made up of the
Chair, two Executive Directors and eight other Non-Executive
Directors, who bring a wide range of skills, experience, industry
expertise and professional knowledge to their roles. A summary
of the diversity of the gender, length of tenure and nationality of the
Board is shown below. The Nominations Committee considers
these as important factors when reviewing the composition of the
Board and its Committees, which it does on an ongoing basis. It
has concluded that the current composition of the Board remains
appropriate, and allows it to discharge its duties to the Company
and govern the Group effectively.
Balance of our Board as at 31 December 2021
Balance of Executive/Non-Executive Directors
Gender diversity
Executive: 2
Chair: 1
Female: 5
Non-Executive: 8
Length of tenure of Non-Executive Directors and Chair
Nationality of Directors
Over 9 years: 1
7–9 years: 2
0–4 years: 4
Irish: 1
Swedish: 1
German: 1
Dutch: 1
4–6 years: 2
American: 5
Ms Hogg is a British, American and Irish national
Male: 6
British: 4
RELX Annual report and financial statements 2021 | Corporate Governance ReviewMarket segmentsGovernanceFinancial statements and other informationFinancial reviewCorporate ResponsibilityOverview 92
Board and Committee changes in 2021
Having served on the Board since 2009, Sir Anthony Habgood
stepped down as Chair of the Board, and was succeeded by Paul
Walker with effect from 1 March 2021. Mr Walker was also
appointed as Chair of the Nominations and Corporate Governance
Committees, and as a member of the Remuneration Committee at
that time.
Charlotte Hogg was appointed as a member of the Audit
Committee as of 28 July 2021, while Marike van Lier Lels stepped
down as a member of the Audit Committee at the same time.
Board Committee membership throughout 2021 is set out in the
table on page 89.
Board skills and expertise
The Board collectively has a diverse range of skills, including in
the following areas:
§ Corporate governance for listed companies
§ Corporate strategy and organisation
§ Operational experience in the Group’s product markets
§ Executive board member and leadership experience in large
international listed companies
§ Corporate responsibility, human resources management and
executive remuneration
§ Financial expertise
For further information on the skills of each individual Director,
please see pages 8 to 10 of the Notice of Meeting for our 2022 AGM.
Board induction and development
Following appointment and as required, all Directors receive a full,
formal and tailored induction tailored to individual requirements
based on knowledge and experience. The Chair and Company
Secretary are responsible for ensuring that an effective induction
programme takes place for all new Directors.
During the year, Paul Walker (appointed in March 2021) took part in
an induction programme. Mr Walker was provided with a
comprehensive briefing pack covering detailed information on
RELX’s businesses and internal control frameworks, recent
reporting materials, as well as historical Board papers and
minutes. To assist him in developing an in-depth understanding of
our operations, a number of meetings with senior managers from
key corporate functions and each of RELX’s business areas, as well
as with our external auditors, were organised.
For Directors to effectively discharge their responsibilities, it is
important for them to regularly refresh and update their skills and
knowledge. The Board’s annual programme is designed with this
in mind, and includes several deep dive reviews into key business
areas selected for each year. In 2021, the Board took part in a
two-day long deep dive business review, with a particular focus on
the Risk division.
Board information and support
All Directors have complete and timely access to the information
required to discharge their responsibilities fully and effectively.
They have access to the services of the Company Secretary, who is
responsible for the accurate and timely flow of information to the
Board, advising the Board on all corporate governance matters,
and ensuring that all Board procedures are followed correctly.
The Directors also have access to other members of the Group’s
management, staff and external advisers, and may take
independent professional advice in the furtherance of their duties,
at the Company’s expense.
Each of the Directors is expected to attend all meetings of the
Board and Committees of which they are a member. However,
where a Director is unable to attend a Board or Committee
meeting, they are provided with the papers relating to that meeting
and are able to discuss issues arising with the respective Chair and
other Board and Committee members. They are also provided with
a copy of the meeting minutes.
Board evaluation
The Directors consider the evaluation of the Board, its Committees
and members to be an important aspect of corporate governance.
The Board undertakes an annual evaluation of its own
effectiveness and performance, and that of its Committees and
individual Directors.
In 2021, the Board evaluation process was conducted internally
and supported by the Company Secretary. Using questionnaires
completed by all Directors, the key areas which were explored
included: the Board’s composition and effectiveness, the quality of
information provided by management, the boardroom culture and
dynamics, the Board’s core oversight responsibilities in relation to
strategy development, setting and monitoring the Group’s culture
and values, financial performance, market developments,
stakeholder relations (including the Board’s understanding and
visibility of the views of the Group’s stakeholders and incorporation
of them into its decision-making process), talent and succession,
diversity and inclusion and risk and governance. The review also
covered the performance of the Board Committees and their
effectiveness in achieving objectives and fulfilling their terms of
reference. The results of the Board evaluation were presented to
the Board by the Chair.
In addition, the Chair conducted individual performance reviews
with each Non-Executive Director while the Senior Independent
Director led the appraisal of the Chair’s performance.
RELX Annual report and financial statements 2021 | Governance 93
Conclusions of the 2021 Board evaluation
Overall, it was the collective view of the Directors that the Board is
effective at discharging its responsibilities, operating with an open
and collegiate culture that allows good challenge on key issues and
that it is appropriately involved in the development and approval of
the Group’s strategic, financial and business objectives. The
evaluation confirmed that Directors believe that the Board
functions effectively and that it has an appropriate balance of skills,
experience, and diversity to address the opportunities and
challenges facing the Company. The Board also agreed that the
continued focus on succession planning for senior management
positions remains appropriate. In addition, the evaluation
confirmed that each Board Committee is being well chaired and
is effective.
The Board evaluation identified several specific topics for
additional focus by the Board in 2022, including product and market
competition, further understanding the views of the Company’s
suppliers in their dealings with RELX and the key cyber security
risks facing the Company. These topics will be further addressed
as part of the Board’s 2022 programme.
Individual Director performance
Individual Director performance and contributions were assessed
by the Chair through one-to-one meetings with the Chair. The
evaluation allowed reflection on personal development and
discussion on boardroom-related matters. The findings of this
evaluation highlighted that each Director continues to contribute
positively and effectively both within and outside Board meetings
and constructively challenges management on key issues.
Through the evaluation process it was also confirmed that each
Director remains independent and has sufficient time to devote to
their role.
Chair’s assessment
The performance of the Chair was evaluated by the Senior
Independent Director, with feedback provided from Non-Executive
Directors and Executive Directors. All Directors felt that the
transition to the new Chair had been very smooth. This review also
confirmed that the Chair provided good leadership to the Board in
the year, particularly with the challenges posed by the Covid-19
pandemic, and that he facilitates the effective contribution of each
Director and the development of constructive relationships and
communications with the Board.
Actions from the 2020 Board evaluation
Following the 2020 Board evaluation process, the Board agreed
that it should continue to focus on: inclusion and diversity; the
Group’s culture; and RELX’s ESG programme as well as
comprehensive discussions on emerging technologies in the
sectors within which RELX operates. The Board confirms that
these actions have been appropriately addressed through the
Board’s annual programme, and will remain key areas of focus
going forward.
Audit, risk and internal control
Internal control and risk management
RELX has established internal controls and risk management
practices that are embedded into the operations of the businesses,
based on the Internal Control – Integrated Framework (2013)
issued by the Committee of Sponsoring Organisations of the
Treadway Commission. Details of the principal risks facing the
Group and how these are mitigated are set out on pages 66 to 69.
Additionally, in order to provide reasonable assurance against
material inaccuracies or loss, and on the effectiveness of the
systems of internal control and risk management, RELX has
adopted the three lines of defence assurance model as set
out below.
1st line of defence
RELX businesses maintain systems of internal
control which are appropriate to the nature and
scale of their activities and address all significant
strategic, operational, financial, legal and
compliance risks that they face
2nd line of defence
Central functions that are responsible for
1) designing policies, 2) introducing and sharing best
practice, 3) monitoring and evaluating compliance
with RELX policies and relevant legislation and
regulation and appropriate remediation
3rd line of defence
Internal audit provides independent assurance on
the effectiveness of the 1st and 2nd lines of defence
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The Board and Audit Committee
Note: In addition to RELX’s internal controls, RELX is also audited externally.
The report of the external auditor has been included from pages 130 to 137.
The Board has in place a schedule of matters reserved for its
decision-making. The Board is responsible for the system of risk
management and internal control of RELX and has implemented
an ongoing process for identifying, assessing, monitoring and
managing the principal and emerging risks faced by the Company.
This process was in place throughout the year ended 31 December
2021, and up to the date of approval of the Annual Report and
Financial Statements 2021. The Board monitors these systems of
internal control and risk management and annually carries out a
review of their effectiveness.
RELX has an established framework of procedures and internal
control, with which the management of each business is required
to comply. RELX operates authorisation and approval processes
throughout all of its operations. Access controls exist where
processes have been automated to ensure the security of data.
Management information systems have been developed to
identify risks and to enable assessment of the effectiveness of
the systems of internal control.
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RELX has a Code of Ethics and Business Conduct that provides
a guide for achieving its business goals and requires officers and
employees to behave in an open, honest, ethical and principled
manner. The Code of Ethics also outlines confidential procedures
enabling employees to report any concerns about compliance, or
about the Group’s financial reporting practices. The Code of Ethics
is available on our website at
www.relx.com.
Each business area has identified and evaluated its principal and
emerging risks, the controls in place to manage those risks and
the levels of residual risk accepted. Risk management and control
procedures are embedded into the operations of the business and
include the monitoring of progress in areas for improvement that
come to management and Board attention.
Principal and emerging risks facing RELX are regularly reported to
and assessed by the Board and Audit Committee. With the close
involvement of operating management and central functions, the
risk management and control procedures aim to ensure that RELX
is managing its business risks effectively and in a coordinated
manner across the business areas with clarity on the respective
responsibilities and interdependencies. Litigation, and other legal
and regulatory matters, are managed by legal directors in the
business areas.
The risk assessment included consideration of emerging risks
and risk appetite. RELX defines emerging risks as new or
changing risks which are highly uncertain in terms of defining
impact or likelihood and are more usually external to RELX.
In line with the Code, the risk assessment identifies and considers
the likelihood and impact of emerging risks on our business
models and reputation. The assessment also considers the need
for mitigation of emerging risks. Risk appetite (defined as RELX’s
willingness to take on risk) is based on an assessment of the level
of residual risk, taking account of inherent risk and mitigation
efforts. The assessment is rated, in relation to RELX’s current
level of residual risk, in three broad categories: reduce, accept and
willing to extend. The level of residual risk which RELX is prepared
to accept will vary, with a high level of mitigation effort over
operational, financial and compliance risks. The residual risk level
for external and strategic risks may be extended if doing so is in
line with RELX’s strategic objectives, values and stakeholder
interests and if shareholder returns could be increased.
The Audit Committee also receives regular reports from both
internal and external auditors on internal control and risk
management matters. In addition, each business area is required,
at the end of the financial year, to review the effectiveness of
internal controls and risk management and report its findings
on a detailed basis to the management of RELX. These reports
are summarised and, as part of the annual review of effectiveness,
submitted to the Audit Committee. The Chair of the Audit
Committee reports to the Board on any significant internal
control matters arising.
Annual review
As part of the year-end procedures, the Audit Committee and
Board reviewed the effectiveness of the systems of internal
control and risk management during the 2021 financial year.
The objective of these systems of internal control and risk
management is to manage, rather than eliminate, the risk of
failure to achieve business objectives. Accordingly, they can only
provide reasonable, but not absolute, assurance against material
misstatement or loss. The Board has confirmed, subject to the
above, that as regards financial reporting risks, the respective
risk management and control systems provide reasonable
assurance against material inaccuracies or loss and have
functioned properly throughout the year. In accordance with
the Code, the Board has also considered the Group’s long-term
viability, following a robust and thorough assessment of its
principal and emerging risks. The resulting viability statement
is set out on page 96.
Responsibilities in respect of
financial statements
The Directors are required to prepare financial statements as
at the end of each financial period, in accordance with applicable
laws and regulations, which give a true and fair view of the state
of affairs, and of the profit or loss, of the Company and its
subsidiaries, joint ventures and associates. They are responsible
for maintaining proper accounting records, for safeguarding
assets and for taking reasonable steps to prevent and detect
fraud and other irregularities.
The Directors are also responsible for selecting suitable
accounting policies and applying them on a consistent basis,
and making judgements and estimates that are prudent and
reasonable. Applicable accounting standards have been followed
and the RELX consolidated financial statements, which are the
responsibility of the Directors of the Company, are prepared
in accordance with UK adopted International Accounting
Standards in conformity with the requirements of the Companies
Act 2006 and International Financial Reporting Standards (IFRS)
and as issued by the International Accounting Standards Board
(IASB), following the accounting policies shown in the notes to the
financial statements on pages 143 to 144. Having taken into
account all of the matters considered by the Board and brought to
the attention of the Board, the Directors are satisfied that the
Annual Report and Financial Statements, taken as a whole, is fair,
balanced and understandable, and provides the information
necessary for shareholders to assess the Group’s position and
performance, business model and strategy.
RELX Annual report and financial statements 2021 | Governance 95
Going concern
US certificates
The Directors have adopted the going concern basis in preparing
these accounts after assessing the principal risks and the
potential impact of Covid-19 on the business over the 18 months to
30 June 2023 and during the longer period over which the Group’s
viability has been assessed, as described below. Management
forecasts reflect a downside scenario which includes
unanticipated Covid-19 restrictions limiting the recovery in the
Exhibitions business and the simultaneous occurrence of
principal risks, which combined would reduce adjusted operating
profit by 22%. We have also assumed an inability to access the debt
capital markets. Under this scenario, the Group will still have
substantial liquidity headroom on its undrawn $3bn revolving
credit facility and will remain well within the limit of 3.75x (this
limit can be flexed to 4.25x in certain circumstances) on the one
financial covenant (being the ratio of net debt, excluding pensions,
to EBITDA). Having considered this downside scenario, the
Directors believe that the Group is well-positioned to manage its
business risks and that adequate resources exist for the Group to
continue in operational existence for the foreseeable future. They
therefore consider it is appropriate to adopt the going concern
basis in preparing the 2021 financial statements.
A commentary on the Group’s cash flows, financial position and
liquidity for the year ended 31 December 2021 is set out in the Chief
Financial Officer’s report on pages 60 to 65. This shows that after
taking account of available cash resources and committed bank
facilities that back up short-term borrowings, all of the Group’s
borrowings that mature in the period to 30 June 2023 can be repaid
in full. The Group’s policies on liquidity, capital management and
management of risks relating to interest rate, foreign exchange
and credit exposures are set out on pages 167 to 172. The principal
risks facing the Group are set out on pages 66 to 69.
As required by Section 302 of the US Sarbanes-Oxley Act 2002 and
by related rules issued by the US Securities and Exchange
Commission (the Commission), the Chief Executive Officer and
Chief Financial Officer of the Company certify in the Annual Report
2021 on Form 20-F to be filed with the Commission that they are
responsible for establishing and maintaining disclosure controls
and procedures and that they have:
§ designed such disclosure controls and procedures to ensure
that material information relating to the Group is made known
to them
§ evaluated the effectiveness of the Group’s disclosure controls
and procedures
§ based on their evaluation, disclosed to the Audit Committee
and the external auditors, all significant deficiencies in the
design or operation of disclosure controls and procedures and
any frauds, whether or not material, that involve management
or other employees who have a significant role in the Group’s
internal controls
§ presented in the Annual Report 2021 on Form 20-F their
conclusions about the effectiveness of the disclosure controls
and procedures
§ designed internal controls over financial reporting, or caused
such internal control over financial reporting to be designed
under their supervision, to provide reasonable assurance
regarding the reliability of financial reporting
A Disclosure Committee, comprising the Company Secretary and
other senior managers of the Group, provides assurance to the
Chief Executive Officer and Chief Financial Officer regarding their
Section 302 certifications.
Section 404 of the US Sarbanes-Oxley Act 2002 requires the Chief
Executive Officer and Chief Financial Officer of the Company to
certify in the Annual Report 2021 on Form 20-F that they are
responsible for maintaining adequate internal control structures
and procedures for financial reporting and to conduct an
assessment of their effectiveness. The conclusions of the
assessment of internal control structures and financial reporting
procedures, which are unqualified, are presented in the Annual
Report 2021 on Form 20-F.
RELX Annual report and financial statements 2021 | Corporate Governance ReviewMarket segmentsGovernanceFinancial statements and other informationFinancial reviewCorporate ResponsibilityOverview 96
Viability statement
Viability statement
The UK Corporate Governance Code requires Directors to
assess the viability of the Group over an appropriate period of
time. The Directors have made the assessment that given the
nature of Group’s business with a high proportion of recurring
revenue, an average contract length of three years in its largest
segment and a balanced debt maturity profile, a viability period
of three years, aligned with the Group’s annual strategy plan, is
suitable to assess the risks outlined on pages 66-69.
Assessing the Group’s prospects
The Group develops information-based analytics and decision
tools for professional and business customers in the Risk,
Scientific, Technical & Medical (STM), Legal and Exhibitions
sectors. The Market segments section describes each area’s
business model, strategic priorities, market opportunities and
competition, showing how the Group is positioned to create
value for shareholders over the longer term.
The Group’s prospects are assessed annually through the
strategic planning process which includes a review of
assumptions made and an assessment of each business area’s
longer-term plan. The resulting three-year strategy plan forms
the basis for Group and divisional targets and in-year budgets.
Objectives are set with consideration given to the economic and
regulatory environment, and to customer trends, as well as
incorporating risks and opportunities. The most recent
three-year strategy business plan was agreed by the Directors
in September 2021 and updated in February 2022. Separate
from the annual strategy plan, the Directors periodically receive
updates from business area management on their operations,
prospects and risks. Whilst these reviews and discussions
naturally focus more closely on the more immediate risks facing
the business within the three-year strategy planning period,
they also cover the risks described in the principal risks section
on pages 66-69.
Covid-19
Throughout the Covid-19 pandemic, the Group’s three largest
business areas, Risk, STM and Legal, have been able to maintain
operational capability and have seen good growth in electronic
revenues. For the most part, the challenges faced by certain
segments of these businesses have been more than offset by
opportunities in other areas and growth in the base business has
accelerated compared to pre-pandemic rates. However, the
Group’s Exhibitions business, which accounted for 7% of Group
revenue in 2021 (5% in 2020 and 16% in 2019), has been impacted
significantly by the pandemic. Whilst we have resumed running
physical events in all major geographies, there remains an
ongoing risk of cancellation or rescheduling of events. While our
forecast assumes only a gradual recovery in Exhibitions, with
revenues not reaching 2019 levels until 2024, for viability
assessment purposes we have assumed additional Covid-19
related restrictions in 2022 slowing the recovery even further.
Assessing the Group’s viability
The three-year strategy plan for our businesses includes
management’s assessment of the anticipated operational risks
affecting the business. Management then considered the
viability of the business assuming additional Covid-19 related
restrictions impacting Exhibitions and the simultaneous
occurrence of Cyber security and Paid subscription risks
resulting in a 22% decline in 2022 adjusted operating profit and
similar declines in 2023 and 2024, and the closure of the debt
capital markets preventing the refinancing of scheduled
liabilities. It is assumed that the Group’s undrawn $3bn
revolving credit facility will be refinanced prior to the first
tranche maturing in 2023. The resulting analysis, which
assumed no share buybacks, modest acquisition activity and a
growing dividend, determined that the Group would have
sufficient liquidity to refinance all maturing term debt. While the
reduction in adjusted operating profit due to the simultaneous
occurrence of two principal risks and further Covid-19
restrictions on Exhibitions would increase leverage, we would
nevertheless retain significant headroom under the credit
facility leverage covenant of 3.75x (with the ability to flex this
limit to 4.25x in certain circumstances providing additional
headroom).
While the impact of the Covid-19 pandemic on the events
business has been significant, the remaining businesses, which
contribute more than 90% of the Group’s revenue, are currently
performing at or above historic levels and their outlook remains
positive. We remain focused on successfully pursuing our
strategic priority of organically developing increasingly
sophisticated information-based analytics and decisions tools
that deliver enhanced value to our customers, supplemented by
selective acquisitions that support our organic growth. We
believe the combination of compelling structural opportunities
combined with an appropriate capital structure will continue to
drive long-term value.
Based on this assessment and the scenario modelling that
shows sufficient liquidity and covenant compliance even with
continued impact of Covid-19 on the Exhibitions business for
several years, the simultaneous occurrence of principal risks
and the closure of the debt capital markets, the Directors
confirm that they have a reasonable expectation that the Group
will be able to continue its operations and meet its liabilities as
they fall due over the next three years and are not aware of any
longer-term operational or strategic risks that would result in a
different outcome from the three-year review.
RELX Annual report and financial statements 2021 | Governance Report of the Nominations Committee
97
This report has been prepared by the Nominations Committee
and has been approved by the Board.
Activities of the Committee
During the year, the Committee held three meetings.
Membership
The Committee comprises only Non-Executive Directors. The
members of the Committee who served during the year were:
§ Paul Walker (Chair of the Committee effective
1 March 2021)
§ Sir Anthony Habgood (until 1 March 2021)
§ Wolfhart Hauser
§ Robert MacLeod
§ Marike van Lier Lels
Responsibilities
The principal purpose of the Committee is to provide
assistance to the Board by identifying individuals qualified
to become Directors and recommending to the Board the
appointment of such individuals.
The role and responsibilities of the Committee are set out
in written Terms of Reference and are available on the
company’s website at
www.relx.com. These include:
§ to keep under review the size and composition of the Board
ensuring that it maintains an appropriate balance of skills,
experience, knowledge and diversity
§ reviewing the external commitments of each Director to
ensure that he/she has sufficient time to devote to their
role at RELX
§ to ensure that plans are in place for orderly Board
and senior management succession and to oversee
a diverse pipeline for such succession
§ to agree the specification for the recruitment of
new Directors
§ to procure the recruitment of new Directors
§ to recommend to the Board the appointment of candidates
as RELX PLC Directors
§ to recommend Directors to serve on the Committees of
the Board and to recommend members to serve as the
Chair of those Committees
§ to make recommendations to the Board in relation to
the re-appointment of any Non-Executive Director at
the conclusion of his/her specified term of office and
the election or re-election of Directors following a
review of the performance of individual Directors
from the Board evaluation process
§ reviewing the Board’s and Group’s Diversity Policy,
including their effectiveness
§ to review and make recommendations to the Board on the
authorisation of Directors’ conflicts of interest, including
any terms to be imposed in relation to a Director’s conflict
of interest
The Committee’s main areas of focus were:
§ the re-appointment of Marike van Lier Lels at the conclusion of
her specified term of office
§ the continued independence of Linda Sanford as a Non-Executive
Director as a result of her having served on the Board for nine
years and the continued independence of Dr Wolfhart Hauser
as a Non-Executive Director in advance of his nine years of
service on the Board in April 2022
§ the impact on Board composition and balance, and Board
Committee membership, resulting from the impending
retirement of Linda Sanford as a Non-Executive Director
§ a review of the composition of the Audit Committee resulting
in the appointment of Charlotte Hogg as a member of the
Audit Committee, with Marike van Lier Lels stepping down as a
member of the Audit Committee effective 28 July 2021, in order
to allow her sufficient time to focus on her responsibilities as a
Workforce Engagement Director
§ succession planning for Board and senior management roles
§ ongoing review of Directors’ actual and potential conflicts of
interest and the recommendation to the Board of the suitability
of Directors’ external non-executive director appointments
§ to undertake an internal Board evaluation for the year ended
31 December 2021 and to act upon the findings from the
Board evaluation
§ a review of the Committee’s Terms of Reference
§ reviewing this report and recommending to the Board its
inclusion in the 2021 Annual Report and Financial Statements
Role of the Nominations Committee
The Nominations Committee is responsible for making
recommendations to the Board on the structure, size and
composition of the Board and its Committees and succession
planning for the Directors and other Senior Executives. As part
of the role, the Committee aims to ensure that the Board, its
Committees and RELX’s Senior Executives have the correct
balance of skills, knowledge and experience to effectively lead
the Group both now, and over the longer term, and that associated
processes are in place to ensure that this is the case as the Group
grows and develops over time. This is achieved through effective
succession planning and talent development, and an understanding
of the changing competencies required to support the Company’s
strategy, purpose, culture and values.
Following his appointment as Chair of the Board, Mr Paul Walker
became Chair of the Nominations Committee effective 1 March
2021. The Committee’s focus has been maintaining a strong,
value-adding and effective Board, which has a broad range
of professional backgrounds, skills and perspectives.
Linda Sanford intends to retire from the Board with effect from the
conclusion of the AGM in April, having served on the Board for over
nine years. The Board would like to thank Linda for her service to
RELX and her valuable contribution to the Board’s and to the
Committee’s work over the last nine years.
Market segmentsGovernanceFinancial statements and other informationFinancial reviewCorporate ResponsibilityOverviewRELX Annual report and financial statements 2021 | Report of the Nominations Committee 98
Changes to the Committees
A small number of changes have also been made to the
membership of Board Committees during the year, reflecting
Board changes and the ongoing review and refresh of
Committee membership.
Board and Committee succession planning and composition
When reviewing Board composition, the Committee considers,
amongst other things, overall length of service and the need
for membership to be regularly refreshed, as well as remaining
cognisant of RELX’s Board Diversity Policy. All appointments
to the RELX Board and each of its Committees are based
primarily on merit and the suitability of an individual for any
given role. As illustrated by the changes in Board Committee
membership during the year, the Committee continued to focus
on succession planning. It continues to keep under review, on an
ongoing basis, the structure, size and composition of the Board
and its Committees, making recommendations to the Board as
appropriate. Effective succession planning contributes to the
delivery of the Group’s strategy by ensuring the desired mix of
skills and experience of Board members now and in the future.
Succession planning for the Board was a regular agenda item
at Committee meetings in 2021, emphasising its importance
and the Committee’s focus on this area. Women make up 45%
of the Board. We participated in the Parker review confirming
we meet its ethnicity target.
Executive and management succession planning
The Board is also committed to recognising and nurturing talent
within the executive and management levels across the Group.
This manifested itself in two principal ways during the year. Firstly,
the Board completed its RELX Talent Management review, as part
of which it received a presentation from the Chief Human Resources
Officer on the first three tiers of management across RELX.
Additionally, the Board received a detailed presentation from
the Chief Executive Officer on succession plans for senior
management, including broad views on potential timings and
implications for diversity in those positions. It satisfied itself
that appropriate succession planning arrangements were
in place for the orderly succession to senior management
positions, supported by a diverse pipeline for such succession.
Board Diversity Policy
The Committee monitors and reviews the progress made against
the Board’s Diversity Policy, which stresses that the Board’s
composition should be designed to advance the Group’s strategy
for all of its stakeholders, and that the benefits of all aspects of
diversity should be considered including, but not limited to, gender
and ethnicity. As part of Board discussions, recognition was given
to the benefits of greater diversity, including social and cognitive
personal strengths throughout the organisation including the
Board itself. The policy requires that when searches for an
appointment to the Board are conducted by the Company or by
external search firms, they will identify and present a gender-
balanced list of diverse and qualified potential candidates.
Independence of the Non-Executive Directors
Annually the Committee considers the tenure and independence
of existing Non-Executive Directors, and whether a Director’s
length of service has in any way impacted his or her ability to
remain independent in character and judgement in performing
his or her duties. The Board considers all of the Non-Executive
Directors,other than the Chair whose independence was not
assessed, but who was independent on appointment,to be
independent of management and free from any business or other
relationship which could materially interfere with their ability to
exercise independent judgement.
Additionally during the year the Committee carried out robust
independence assessments with regard to Linda Sanford and Dr
Wolfhart Hauser given their tenure on the Board. The assessments
concluded that they continued to make thoughtful and valuable
contributions to the Board, they continued to constructively
challenge management and other members of the Board as
appropriate, and there were no circumstances impairing their
independence. The Board therefore deemed that they remained
independent and would likely do so past the completion of nine
years of service as a Non-Executive Director.
Ms Sanford is retiring having served on theBoard for over nine
years. With respect to Dr Hauser, the Committee recommended
to the Board, and the Board agreed, that Dr Hauser would remain
on the Board for an extended period until the conclusion of the
Company’s 2023 AGM, subject to shareholder approval. The
Committee believed that in light of Mr Walker’s appointment as
Chair of the Board in 2021, extending Dr Hauser’s tenure would
allow an orderly succession to the roles of Senior Independent
Director and Remuneration Committee Chair, roles currently
undertaken by him, and was in the long-term best interests
of shareholders.
In accordance with the results of the independence assessment,
and in line with the requirements of the Code, all Directors will
retire at this year’s AGM and, with the exception of Linda Sanford,
submit themselves for re-appointment by shareholders.
Group Inclusion and Diversity Policy
The Group Inclusion and Diversity (I&D) Policy fosters a positive
environment where employees feel valued regardless of their
gender, national origin, ethnicity, religion, sexual orientation and/
or identity, age or disability status. It advances the Company’s
strategy by ensuring the engagement of all employees; fosters
innovation by harnessing the collective strength of their diverse
backgrounds and experiences to generate innovative products
and solutions that drive value for our customers; and helps us
attract and retain employees who are important to our future.
To advance the Policy’s commitments in the year, we set
I&D-related corporate responsibility objectives, linked to
the United Nations Sustainable Development Goals. These
included progressing RELX’s new inclusion goals (linked to SDG
10, Reduced Inequalities) through focused recruitment, training
and development efforts. Each RELX business area has developed
its own action plan which was reviewed regularly by the RELX
Inclusion Council.
RELX Annual report and financial statements 2021 | Governance 99
We also progressed living wage studies in four countries beyond
the UK, where we are already an accredited living wage employer,
with significant numbers of employees: in the United States, the
Philippines, India and France. Business for Social Responsibility
is supporting us in this work.
We have a career and mobility process through our global HR
system that allows employees to identify areas of current strength
and future development and we asked each person as part of their
annual performance assessment to state how they had helped
foster a collaborative environment of inclusion, trust and respect
necessary for higher team performance. We also work closely
with our recruiters to ensure diverse candidate slates for open
roles. We advanced our Employee Resource Groups (ERG) which
allow employees to champion aspects of diversity such as gender,
LGBTQ+, race and ethnicity, and disability, and in the year, we held
an ERG conference, RISE, with 20 hours of programming, attended
by more than 1100 employees.
In 2021, we continued our mentoring programmes for senior
women talent, and provided training for employees on critical
issues such as unconscious bias, courageous conversations,
psychological safety, and avoiding harassment. We are signatories
to the Women’s Empowerment Principles Target Gender Equality
initiative; the Race at Work Charter; and the Valuable 500, which
promotes workplace disability inclusion. We also conducted our
global employee opinion survey, where 84% of employees scored
the Company favourably on inclusive workplace. RELX was a 2021
Bloomberg Gender Equality Index constituent and came in the top
25 for gender equality in The Netherlands as ranked by Equileap.
We are working to advance racial and ethnic diversity within RELX,
as well as in the communities we serve. For example, in the year,
the Elsevier Foundation supported Philadelphia’s Black Girls
Code with a series of interactive sessions focused on mobile
app, web and game development. In the year, LexisNexis Legal &
Professional (LNL&P) launched the LexisNexis African Ancestry
Network LexisNexis Rule of Law Foundation Fellowship, as
part of its commitment to eliminate systemic racism in legal
systems. In partnership with the US Historically Black Colleges
and Universities Law School Consortium, an inaugural cohort
of twelve law students were each awarded $10,000; they spent
nine months developing leadership skills and worked with
LNL&P employees on Rule of Law projects. Their findings were
published in LNL&P’s Eliminating Systemic Racism in the Legal
System: A Collection of Legal Advocacy Papers. Also in 2021,
Reed Exhibitions announced it will donate $1 million over the
next five years to charity partners around the world working
to improve inclusivity and diversity in their local communities.
Among recipients is Ally2Action which curates content to educate
and inform people about US race relations and Black history,
encouraging them to participate in change.
As at the first quarter of 2022, the Group’s senior management
team and direct reports is comprised of 64% male and 36% female.
Committee Evaluation
The annual evaluation process confirmed the continued
effectiveness of the operation of the Committee.
Market segmentsGovernanceFinancial statements and other informationFinancial reviewCorporate ResponsibilityOverviewRELX Annual report and financial statements 2021 | Report of the Nominations Committee 100
Directors’ Remuneration Report
The Directors’ Remuneration Report has been prepared by the Remuneration Committee (the Committee) in accordance with the
UK Corporate Governance Code, the UK Listing Rules and Schedule 8 of the Large and Medium-sized Companies and Groups
(Accounts and Reports) Regulations 2008, as amended (the UK Regulations). The Report was approved by the Board.
Introduction
As you have seen from the financial results presented earlier in the annual report, the Company achieved an outstanding performance
in 2021. It robustly executed its strategy of focusing on organic development with strong cash generation to continually improve returns,
and to drive a higher growth profile. Underlying revenue growth accelerated to 7%. At constant currencies, adjusted operating profit
grew by 13% and adjusted EPS by 17%. At the same time, we continued making substantial investments in developing analytics
and decision tools that deliver enhanced value to our customers.
The purpose of RELX is to benefit society by developing products that help researchers advance scientific knowledge; doctors and
nurses improve the lives of patients; lawyers promote the rule of law and achieve justice and fair results for their clients; businesses and
governments prevent fraud; consumers access financial services and get fair prices on insurance; and customers learn about markets
and complete transactions. Our purpose guides our actions beyond the products that we develop. It defines us as a company. Every day
across RELX our employees are inspired to undertake initiatives that make unique contributions to society and the communities in which
we operate. We see what we do as a company as being an integral part of our commitment to environmental, social and governance (ESG)
performance.
In addition, we are committed to consistently improving our ESG performance on commonly used operational ESG metrics. We have
signed the Climate Pledge to become net zero and will continue our work on tackling climate change through our own operations, and by
meaningful engagement with our suppliers, customers and other stakeholders. The Board was pleased to see, through pulse surveys and
workforce engagement sessions, that employee engagement has remained high and employees felt strongly supported during the year. Our
performance continues to be recognised by external rating organisations. RELX maintains its AAA ESG rating with MSCI for the sixth
consecutive year and is fourth in the Responsibility 100 Index of FTSE 100 companies measured against the United Nations Sustainable
Development Goals. Sustainalytics ranked us first globally in our sector for our ESG performance. More information can be found on
pages 38 to 58.
Based on the strong performance of the Group in 2021, we are proposing an increase in the full-year dividend of 6%. Our share price
reached a historical high during 2021, increasing by over 30% during the year and outperforming the FTSE 100 for the eleventh
consecutive year.
2021 outcomes
Early in the year, the Committee determined to keep the same structure for the AIP as had been used in 2020, separating the targets of
RELX excluding Exhibitions (“RX”) from those of RX for purposes of the AIP, assigning a weight of 90% in the AIP for RELX excluding RX
and 10% for RX, to prevent potential windfall gains in case RX recovered from the effects of the pandemic more quickly than anticipated.
The Committee also set a cap on the payout of the AIP of 90% of maximum if RX’s adjusted operating profit in 2021 did not materially
improve from 2020. In accordance with the remuneration policy previously adopted, the AIP payout at target performance has been
reduced from 150% to 135% of base salary. The maximum remains 200% of base salary. The proportion of AIP payout deferred into
shares for three years has been increased from one-third to 50% of the AIP earned.
Our three largest business areas (Risk, STM and Legal), which represent over 90% of Group revenues, each delivered strong organic
revenue growth rates, along with underlying adjusted operating profit growth in line with, or ahead of, underlying revenue growth. RX
returned to profitability. These results drove an AIP payout of 86% of the maximum. Details of our targets and achievements for the year
are shown on pages 103 and 104.
During 2020, the Committee also reviewed the three outstanding LTIP cycles and determined not to make any adjustment to the 2018-2020
LTIP cycle, given that more than half of the performance period had elapsed. As indicated in the 2020 annual report, the Committee also
reviewed at the time the 2019–2021 and 2020–2022 LTIP cycles to ensure that management had an appropriate incentive to continue to
drive performance in line with our strategy of consistent long-term growth and value creation in each of our business areas and that the
outcomes for those two LTIP cycles appropriately and fairly reflect the performance of the Company. Consistently with the approach taken
for the AIP, the Committee decided early in 2021 that financial performance would be measured separately for RELX excluding RX and
RX, on a 90%/10% basis (reflecting the respective sizes of the businesses) and the overall payout would be capped at 90% of the maximum
for these two cycles. The targets remain unchanged from when these were set at the beginning of the cycles. The three largest business
areas performed strongly during the entire performance period and TSR outperformed our UK and European peer groups. RX was
impacted by government-imposed restrictions affecting its ability to run events. As a result, the LTIP payout is 71% of the maximum.
Details of our targets and achievements are shown on page 105. See page 111 for details of historical remuneration for the CEO.
In determining the level of payout under the annual and the multi-year incentives, the Committee took into account RELX’s overall
business performance and value created for shareholders and other relevant factors, such as the Company’s response to the
pandemic with respect to employees, its ability to continue to meet customer needs and its contribution to the scientific and
medical community’s understanding of Covid-19 and its public health implications. The Committee determined that the outcomes were
fair and appropriate and applied no discretion to the payouts.
RELX Annual report and financial statements 2021 | Governance 101
Broader employee considerations
In 2021, the Committee reviewed information on workforce remuneration and related policies, including:
§ key statistics on the composition of the RELX workforce such as location, gender, ethnicity, age and length of service;
§ pay philosophy and the evolution of our pay practices, including pay equity processes;
§ annual salary increase guidelines globally;
§ details of the pension plan arrangements in our top five countries by number of employees;
§ participation data on annual incentives (sales and non-sales) and share plans;
§ employee surveys conducted during the year. In addition, our designated Non-Executive Director responsible for workforce
engagement, Marike van Lier Lels, continued to meet with employee representatives from Europe, US and Asia Pacific during 2021
and reported back to the Board. Further information on the workforce engagement process is provided in the Governance section
on page 85.
When determining the remuneration for Executive Directors and Senior Executives, the Committee considers business and individual
performance as well as other factors including broader employee reward.
The Committee is satisfied that the overall remuneration for Executive Directors is appropriate and fair having considered external
and internal relativities.
The Committee is satisfied that the incentive schemes drive the desired behaviours to support the Company’s purpose, values and strategy.
Remuneration Policy and implementation
An updated Remuneration Policy was approved by shareholders at the 23 April 2020 Annual General Meeting with 93.4% votes in favour.
The remuneration policy, which applies for three years from the conclusion of the 2020 AGM, as approved by shareholders, is set out on
pages 115 to 121 of this report. The first awards under the new policy were granted in the first quarter of 2021.
Shareholders will be invited to vote (by way of an advisory vote) on the 2021 Annual Remuneration Report at the 2022 AGM.
Implementation of the Remuneration Policy in 2022
In line with increases for the wider employee population, and consistent with the 2022 salary increase guidelines for UK-based
employees, the Committee has approved 2022 salary increases for the Executive Directors of 2.5%.
As outlined in previous reports, the value of pension benefits for the CEO and CFO will continue to decrease, so that the value of their
pension benefits will be aligned with the regular defined contribution plans (currently capped at 11% in the UK) by the end of 2022.
The CEO is a member of a legacy defined benefit scheme and pays increasing participation fees (35% of base salary in 2022) and
will cease to accrue further benefits under this scheme at the end of 2022. The CFO’s cash in lieu of pension is reduced to 16% of
base salary for 2022. Further details can be found on page 107.
Alignment of incentives with strategy
Our long-term strategic priority is unchanged: the organic development of increasingly sophisticated information-based analytics
and decision tools that deliver enhanced value to our customers, supplemented by targeted acquisitions.
The performance measures in the incentive plans align with the strategy and the financial key performance indicators on page 6 of
the Annual Report, by focusing on sustained earnings growth, return on invested capital and shareholder returns in the LTIP. The
AIP is based on revenue, profit, cash flow and sustainability metrics and focuses on annual objectives and milestones and creates
a platform for sustainable future performance.
The Committee also considers broader performance factors when determining payouts.
The performance measures are based on adjusted figures as they provide relevant information in assessing the Company’s performance,
position and cash flows and we believe they track the core operational performance of RELX and how it contributes to shareholder value
creation. The Annual Report includes a reconciliation of adjusted measures to IFRS measures.
Wolfhart Hauser
Chair, Remuneration Committee
RELX Annual report and financial statements 2021 | Directors’ Remuneration ReportMarket segmentsGovernanceFinancial statements and other informationFinancial reviewCorporate ResponsibilityOverview 102
Annual Remuneration Report
Single Total Figure of Remuneration – Executive Directors (audited)
(a)
(b)
(c)
(d)
(e)
(f)
Annual incentive
Deferred
Share based
£’000
Erik Engstrom
Nick Luff
2021
2020
2019
2021
2020
2019
Salary
1,312
1,280
1,249
773
754
735
Benefits(1)
82
84
86
15
15
15
Cash
1,134
1,101
1,276
668
648
749
Shares(2)
1,134
550
638
668
324
375
awards(3)
5,335
429
5,558
2,618
210
2,781
Pension(4)
635
536
539
139
151
186
Total
9,634
3,980
9,346
4,880
2,102
4,841
Total fixed
remuneration(5)
2,030
1,900
1,874
926
919
936
Total variable
remuneration(5)
7,604
2,080
7,472
3,954
1,183
3,905
(1) Benefits are typically comprised of a car allowance, private medical/dental insurance and the cost of tax return preparation.
(2) One-third of the 2020 AIP and 50% of the 2021 AIP is paid in shares deferred for three years. Dividend equivalents accrue on
these shares.
(3) The 2021 figures reflect the vesting of the 2019–2021 cycle of the LTIP. As the LTIP vests after the approval date of this Report,
the average share price for the last quarter of 2021 has been used to arrive at an estimated figure in respect of these awards,
in line with the methodology prescribed by the Regulations.
The estimated figures for 2020 disclosed in last year’s Report have been restated to reflect the actual amount of the 2018-2020 cycle
of the LTIP vested and the actual share prices and exchange rates, which increased the 2020 disclosed figure by £30k for the CEO
and by £14k for the CFO. The vesting percentage was determined on 12 February 2021 and was in line with the one
disclosed on page 98 of the 2020 Remuneration Report.
For Erik Engstrom, the amount that directly reflects share price appreciation is £80k for 2020 and £1.2m for 2021. For Nick Luff,
these numbers are £39k for 2020 and £0.6m for 2021.
The awards are due to vest in February 2022 and the 2021 figures will be restated in next year’s report to reflect actual
values at vesting.
(4) The pension figure for Erik Engstrom reflects his current membership of the UK legacy defined benefit pension scheme and
has been calculated in accordance with the prescribed methodology set out in the Regulations. This figure does not represent a
contribution by the Company. In 2021, the Company contributed £50,064 to the funded portion of his defined benefit pension plan.
In 2021, the CEO contributed a total of £384,459 (30% of his pensionable earnings) by way of Total Plan Fees, up from £331,100 (c.25%
of pensionable earnings) in 2020. The pension figures for 2021 and 2020 in the table are reduced by these Total Plan Fees. The
increase in the theoretical pension figure in the table is solely due to the lower inflation rate used in the calculation as prescribed
by the Regulations. The actual benefit was reduced in the year as the pension accrual remains the same but the CEO’s Total Plan
Fees increased. For details of Mr Engstrom’s accrued pension as at 31 December 2021, and further information on his pension
reduction in 2022 and the coming years, see page 107.
Nick Luff receives a cash allowance in lieu of pension which reduced from 20% of salary to 18% of salary effective 1 January 2021.
For details on the reduction of the CFO’s allowance in 2022 and the coming years, see page 107.
(5) Total fixed remuneration includes base salary, benefits and pension. Total variable remuneration includes annual incentive
and share based awards.
Some figures and subtotals add up to different amounts than the totals due to rounding.
Compensation for 2019 has been included to provide an additional point of reference.
The total remuneration for Directors is set out in note 25 to the consolidated financial statements on page 178.
RELX Annual report and financial statements 2021 | Governance
103
2021 Annual Incentive
As highlighted earlier, the AIP payout at target performance was reduced from 150% to 135% of base salary and the proportion of
AIP deferred into shares for three years increased from one-third to 50% of the AIP earned. As noted in the Chair’s statement, the
Committee determined to continue to separate the targets of RELX excluding RX from those of RX in the AIP, assigning a weight
of 90% for RELX excluding RX and 10% for RX, to prevent potential windfall gains in case RX’s recovery was faster than anticipated.
The Committee also determined to set a cap on the payout of 90% of maximum in case RX’s adjusted operating profit in 2021 did
not materially improve from 2020. And as always, the Committee retained the right to consider if the resulting payouts are fair
and appropriate in the circumstances at that time and, if not, potentially exercise its discretion to adjust the payouts.
Set out below is a summary of performance against each financial and non-financial measure and the resulting payout for 2021:
Performance measure
Revenue
RELX excl RX
RX
Revenue – Total
Adjusted net profit after tax
RELX excl RX
RX
Adj net profit after tax – Total
Cash flow
RELX excl RX
RX
Cash flow – Total
Financial measures
Non-financial measures
Total
Relative
weighting
% at target
Financial targets (1)
Threshold
Target Maximum
Achievement
Achievement
% vs target
Payout %
vs target
Payout %
of max (2)
27.0%
3.0%
30.0%
27.0%
3.0%
30.0%
27.0%
3.0%
30.0%
90.0%
10%
100%
6,208
6,604
6,935
6,710
372
559
745
534
101.6%
95.6%
1,505
0
1,601
8
1,681
46
1,681
8
105.0%
101.9%
1,910
2,032
0
39
2,134
109
2,227
3
109.6%
7.3%
A detailed description of the non-financial measures
and achievement against those is set out on the next
page.
116.0%
88.1%
113.2%
150.0%
100.5%
145.1%
150.0%
16.6%
136.7%
77.3%
58.7%
75.5%
100.0%
67.0%
96.7%
100.0%
11.1%
91.1%
131.6%
87.8%
96.3%
128.1%
64.2%
86.4%
(1) On an equivalent basis (at actual exchange rates and after the net impact of acquisitions and disposals completed). Targets are set on a constant currency basis and
for revenue and adjusted net profit after tax reflect targeted growth with cash flow based on the targeted cash conversion. Target amounts presented in sterling
reflect actual movements in exchange rates relative to their equivalent constant currency amounts.
(2) The maximum for each measure is 150% of on target. The overall maximum is 200% of salary.
As highlighted earlier, underlying revenue growth was 7%. At constant currencies, adjusted operating profit grew by 13% and adjusted EPS by 17%.
Some figures add up to different amounts than the totals due to rounding.
The Cash AIP (£1,134,263 for the CEO and £667,931 for the CFO) will be paid in Q1 2022 and the Deferred Shares (with a current value of
£1,134,263 in the case of the CEO and £667,931 in the case of the CFO) will be released in Q1 2025. The release of Deferred Shares is not
subject to any further performance conditions but is subject to malus and claw-back.
RELX Annual report and financial statements 2021 | Directors’ Remuneration ReportMarket segmentsGovernanceFinancial statements and other informationFinancial reviewCorporate ResponsibilityOverview 104
Non-financial measures
Although Energy use and Waste targets were significantly exceeded, the payout was capped at 90% of target (60% of maximum) for
these measures given that targets were exceeded during a period of office closures as a result of the pandemic and government
imposed restrictions.
Non-financial measures represent 10% of the AIP. Of this component, achievements and payouts were as follows:
Non-financial measures
Energy use
Relative
weighting
25%
Waste
Paper
25%
25%
§ Reduce Scope 1 (direct) and Scope 2
(location-based) carbon emissions
by 33% against a 2015 baseline.
§ Reduce energy and fuel
consumption by 23% against a
2015 baseline.
§ Purchase renewable electricity
equivalent to 100% of RELX’s
global electricity consumption
§ Decrease total waste sent to landfill
from reporting locations by 33%
against a 2015 baseline.
§ 97% of RELX production papers,
graded in PREPS, to be rated as
‘known and responsible sources’
or certified FSC or PEFC.
Target
Achievement
Payout %
of target
90%
Payout %
of max
60.0%
§ Carbon emissions reduced by 53%
§ Energy and fuel consumption
reduced by 43%.
§ Purchased renewable electricity
equivalent to 100% of RELX’s
global electricity consumption
§ Total waste sent to landfill reduced
90%
60.0%
by 87%
§ 98% of RELX production papers rated
as ‘known and responsible sources’
or certified FSC or PEFC.
100%
66.7%
Socially responsible
suppliers
25%
§ Increase the number of suppliers as
§ Suppliers Code signatories increased
105%
70%
Code signatories to 3,600.
to 3,670
§ Increase number of independent
external audits of suppliers to 105.
§ 111 audits of suppliers completed
Total
100%
96.25%
64.2%
RELX Annual report and financial statements 2021 | Governance 105
2019–2021 LTIP
Set out below is a summary of performance against each measure of the LTIP cycle 1 January 2019–31 December 2021.
As highlighted earlier, the targets remained unchanged from when these were set at the beginning of 2019. The Committee
determined to measure the performance with respect to EPS and ROIC separately for RELX excluding RX and RX, on a 90%/10% basis
and to cap the overall payout at 90% of the maximum. As noted in the Chair letter, the three main business areas continued to perform
strongly and significant value was generated for shareholders through share price appreciation and dividends over the performance
period. RELX outperformed the UK and European peer groups over the period. The payout is 70.5% of maximum.
Performance measure
TSR over the three-year
performance period
Weighting
20%
Average growth in adjusted EPS over
the three-year performance period (2)
40%
ROIC in the third year of the
performance period (3)
40%
Performance range and
vesting levels set at grant (1)
below median
median
upper quartile
below 5% p.a.
5% p.a.
6% p.a.
7% p.a.
8% p.a.
9% p.a.
10% p.a.
11% p.a. and above
below 12.0%
12.0%
12.4%
12.8%
13.2%
13.6%
14.0%
14.4% and above
0%
25%
100%
0%
25%
50%
65%
75%
85%
92.5%
100%
0%
25%
50%
65%
75%
85%
92.5%
100%
Achievement against the performance range
Upper quartile in UK group, just below
upper quartile in European group and
below median in US group
Resulting vesting
percentage
64.7%
RELX excl RX:8.0%; vesting:75%
RX: below threshold; vesting 0%
67.5%
RELX excl RX:13.6%; vesting:85%
RX: below threshold; vesting 0%
76.5%
Total vesting percentage:
70.5%
(1) Calculated on a straight-line basis for performance between the points.
(2) EPS for ‘RELX excluding RX’ is calculated as net income (after tax) excluding net income attributable to ‘RX’, divided by the weighted average number of shares outstanding
in the applicable year, with the share count adjusted to reflect the impact of maintaining consistent leverage before changes in the results of RX over the three-year
performance period.
(3) ROIC for ‘RELX excluding RX’ reflects the performance of the Group for 2021 with adjustments made to remove the effect on ROIC of changes in exchange rates, pension
deficits, accounting standards and the results and invested capital of RX over the three-year performance period. ROIC excludes Ventures portfolio-related invested
capital and realised gains and losses. Including those, ROIC would be 14.4%.
RELX Annual report and financial statements 2021 | Directors’ Remuneration ReportMarket segmentsGovernanceFinancial statements and other informationFinancial reviewCorporate ResponsibilityOverview 106
Single Total Figure of Remuneration – Non-Executive Directors (audited)
Anthony Habgood
Paul Walker(2)
June Felix (3)
Wolfhart Hauser
Charlotte Hogg
Marike van Lier Lels
Robert MacLeod
Linda Sanford
Andrew Sukawaty
Suzanne Wood
Total fee
Benefits(1)
Total
2021
£108,333
£541,667
£107,500
£160,000
£97,494
£127,506
£117,500
£107,500
£107,500
£120,000
2020
£650,000
N/A
£21,724
£160,000
£90,000
£129,571
£117,500
£112,000
£112,000
£120,622
2021
£287
£718
2020
£1,718
N/A
£840
£840
£840
£840
2021
£108,621
£542,385
£107,500
£160,000
£97,494
£128,346
£117,500
£108,340
£107,500
£120,000
2020
£651,718
N/A
£21,724
£160,000
£90,000
£130,411
£117,500
£112,840
£112,000
£120,622
(1) Benefits comprise the notional benefit of tax filing support provided to Non-Executive Directors for filings outside their home country resulting from their directorships
with RELX. The incremental assessable benefit charge per tax return for 2021 was £840 (unchanged from 2020) for a UK tax return. Anthony Habgood and Paul Walker’s
benefits relate to private medical insurance. Further, the Company meets all reasonable travel, subsistence, accommodation and other expenses, including any tax
where such expenses are deemed taxable, incurred by the Non-Executive Directors and the Chair in the course of performing their duties.
(2) Appointed on 1 March 2021.
(3) Appointed on 15 October 2020.
The total remuneration for Directors is set out in note 25 to the consolidated financial statements on page 178.
Non-Executive Directors’ fees
The fees in the Single Total Figure table for Non-Executive Directors reflect the following fees in 2021:
Chair
Non-Executive Directors
Senior Independent Director
Chair of:
– Audit Committee
– Remuneration Committee
Workforce engagement fee
Committee membership fee:
– Audit Committee
– Remuneration Committee
– Nominations Committee
Annual fee 2022
£650,000
£90,000
£30,000
£30,000
£30,000
£17,500
£17,500
£17,500
£10,000
Annual fee 2021
£650,000
£90,000
£30,000
£30,000
£30,000
£17,500
£17,500
£17,500
£10,000
In addition, an intercontinental travel fee of £4,500 was payable to any Non-Executive Director (excluding the Chair) in respect of each
transatlantic journey made in order to attend a RELX Board or Committee meeting during 2021. In 2022, this fee will remain at £4,500.
Fees may be reviewed annually, although in practice they have changed on a less frequent basis. The last review took place in
December 2021.
RELX Annual report and financial statements 2021 | Governance 107
Total pension entitlements (audited)
Erik Engstrom is a member of the legacy UK defined benefit pension plan. He will cease to accrue benefits under this plan at the end of
2022, at which point he will receive pension benefits of equivalent value to the level of pension benefits provided under the Company’s
regular defined contribution pension plans as may be in effect or amended from time to time (currently capped at 11% of base salary in
the UK).Mr Engstrom’s contributions and participation fee (together, the Total Plan Fees), which are payable by him as part of his ongoing
membership of the scheme, have been increasing annually since 2011. In 2021, his Total Plan Fees were 30% of his pensionable earnings
(£384,459), up from 25% in 2020, 20% in 2019 and 12.5% in 2018. His Total Plan Fees will increase to 35% of pensionable earnings in 2022.
Mr Engstrom is also subject to a cap of 2% on annual increases in pensionable earnings.
Nick Luff receives a cash allowance in lieu of pension, which reduced from 27% of salary to 25% on 1 March 2019, 20% on 1 January 2020,
18% on 1 January 2021 and 16% on 1 January 2022, and from the end of 2022, Mr Luff will receive pension benefits of equivalent value to
the level of pension benefits provided under the Company’s regular defined contribution pension plans as may be in effect or amended
from time to time (currently capped at 11% of base salary in the UK).
Erik Engstrom – pension information
Age at December 2021
58
Normal retirement age
60
CEO’s Total Plan Fees
£384,459
Accrued annual pension at
31 December 2021
£605,186
2021 single figure
pensions value
£635,326(1)
(1) The 2021 single figure pensions value is the difference between the accrued annual pension as at 31 December 2020 (adjusted for inflation) and the accrued annual
pension as at 31 December 2021, multiplied by 20 in accordance with the UK Regulations and is net of the CEO’s Total Plan Fees. The increase in the theoretical pension
figure in the table is solely due to the lower inflation rate used in the calculation as prescribed by the Regulations. The actual benefit was reduced in the year as the
pension accrual remains the same but the CEO’s Total Plan Fees increased. In 2021, the Company contributed £50,064 to the funded portion of his defined benefit
pension plan. The remainder of his accrued pension is an unfunded liability of the Company.
Scheme interests awarded during the financial year (audited)
LTIP – PERFORMANCE SHARE AWARDS
Basis on which
award is made
Erik Engstrom 450% of salary
375% of salary
Nick Luff
Face value of
award at grant(1)
£5,760,379
£2,826,747
Value of awards
if vest in line with
expectations(2)
£2,880,190
£1,413,374
Percentage of maximum that
would be received if threshold
performance achieved
If each measure pays out at
threshold, the overall payout is 25%
End of
performance
period
31 December
2023
AIP – DEFERRED SHARES
Erik Engstrom 1/3 of 2020 AIP payout £550,436
1/3 of 2020 AIP payout £324,134
Nick Luff
N/A. The release of AIP Deferred Shares in Q1 2024 is not subject to any
further performance conditions, but is subject to malus and claw-back.
(1) The face value of the LTIP awards and AIP Deferred Shares granted in February 2021 was calculated using the middle market quotation of a PLC ordinary share (£18.66).
This share price was used to determine the number of awards granted.
(2) Vesting in line with expectations for LTIP is as per the performance scenario chart disclosed on page 93 of the 2019 Remuneration Report, i.e. 50%.
The LTIP awards granted in 2021 are based on ROIC, EPS and TSR weighted 40%:40%:20% respectively and assessed independently.
The targets and vesting scales applicable to these awards are set out on page 106 of the 2020 Remuneration Report.
RELX Annual report and financial statements 2021 | Directors’ Remuneration ReportMarket segmentsGovernanceFinancial statements and other informationFinancial reviewCorporate ResponsibilityOverview 108
Statement of Directors’ shareholdings and other share interests (audited)
Shareholding requirement
The Committee believes that a closer alignment of interests can be created between senior management and shareholders if executives
build and maintain a significant personal stake in RELX. The shareholding requirements applicable to the Executive Directors are set out
in the table below. Shares that count for this purpose are (i) any type of RELX security of which the Director, their spouse, civil partner or
dependent child has beneficial ownership of and (ii) AIP deferred shares which are within their three-year deferral period, on a notional
net (after tax) basis. There has been no change to the interests reported below between 31 December 2021 and 10 February 2022.
Meeting the shareholding requirement is both a vesting condition for LTIP awards granted and a requirement to maintain eligibility for
future LTIP awards. On termination of employment, Executive Directors are to maintain their full shareholding requirement (or, if lower,
their actual level of shareholding at the time of leaving) for two years after leaving employment.
On 31 December 2021, the Executive Directors’ shareholdings were as follows (valued using the middle market closing prices of the
relevant securities):
Erik Engstrom
Nick Luff
Shareholding requirement
(% of 31 December 2021 annual base salary)
450%
300%
Shareholding as at
31 December 2021 (% of 31 December 2021
annual base salary) (1)
1,981%
953%
(1) Includes AIP deferred shares which are within their three-year deferral period, on a notional net (after tax) basis (50,951 for Erik Engstrom and 30,060 for Nick Luff).
For disclosure purposes, any PLC ADRs held are included as ordinary shares.
Share interests (number of RELX ordinary shares held)
Erik Engstrom
Nick Luff
Anthony Habgood
Paul Walker (2)
June Felix (3)
Wolfhart Hauser
Charlotte Hogg
Marike van Lier Lels
Robert MacLeod
Linda Sanford
Andrew Sukawaty
Suzanne Wood
1 January 2021
1,017,615
271,316
88,450
N/A
0
14,633
4,750
11,180
6,950
9,700
20,000
5,100
31 December 2021
1,029,503 (1)
276,898 (1)
N/A
16,000
4,100
14,633
4,750
11,452
6,950
9,700
30,000
5,100
(1) Number excludes AIP deferred shares which are within their three-year deferral period. If these were included on a notional net (after tax) basis, the totals at 31 December
2021 would be 1,080,454 for Erik Engstrom and 306,958 for Nick Luff.
(2) Paul Walker was appointed effective 1 March 2021.
(3) June Felix was appointed effective 15 October 2020.
RELX Annual report and financial statements 2021 | Governance 109
Multi-year incentive interests (audited)
The tables below and on the next page set out vested but unexercised and unvested options, unvested share awards and AIP deferred
shares held by the Executive Directors including details of awards granted, options exercised and awards vested during the year
of reporting.
All outstanding unvested options and share awards are subject to performance conditions. For disclosure purposes, any PLC ADRs
awarded under the multi-year incentive plans are included as ordinary shares. Between 31 December 2021 and the date of this Report,
there have been no changes in the options or share awards held by the Executive Directors.
Erik Engstrom
OPTIONS
Total
SHARES (1) (2) (3)
LTIP
Total
Year of
grant
2014
2015
2016
2017
Year of
grant
2018
2019
2020
2021
No. of
options
held on
1 Jan
2021
145,604
158,166
114,584
120,886
101,421
107,380
85,356
90,116
923,513
No. of
unvested
shares
held on
1 Jan 2021
179,318
178,482
309,807
271,164
938,771
No. of
options
granted
during
2021
No. of
shares
awarded
during
2021
308,702
308,702
Option
price on
date of
grant
£9.245
€10.286
£11.520
€15.003
£12.550
€15.285
£14.945
€16.723
Market
price per
share at
award
£14.915
€16.870
£17.698
£20.725
£18.660
No. of
options
exercised
during
2021
Market
price per
share at
exercise
Market
price per
share at
vesting
£18.660
€21.335
No. of
shares
vested
during
2021
10,759
10,708
21,467
No. of
options
held on
31 Dec
2021
145,604
158,166
114,584
120,886
101,421
107,380
85,356
90,116
923,513
No. of
unvested
shares
held on
31 Dec 2021
309,807
271,164
308,702
889,673
Unvested
options
vesting on
Options
exercisable
until
07 Apr 24
07 Apr 24
02 Apr 25
02 Apr 25
15 Mar 26
15 Mar 26
27 Feb 27
27 Feb 27
End of
performance
period
Date of
vesting
Dec 2021
Dec 2022
Dec 2023
Feb 2022
Feb 2023
Feb 2024
(1) In addition, Mr Engstrom has 35,860 AIP deferred shares (pre-tax) awarded in 2019 with a market price at award of £17.698. The release of these AIP deferred shares
in February 2022 is not subject to any further performance conditions. Including these AIP deferred shares increases the number of shares awarded during 2019 to
345,667 and the number of unvested shares held on 31 December 2019 to 984,649.
(2) In addition, Mr Engstrom has 30,777 AIP deferred shares (pre-tax) awarded in 2020 with a market price at award of £20.725. The release of these AIP deferred shares
in February 2023 is not subject to any further performance conditions. Including these AIP deferred shares increases the number of shares awarded during 2020 to
301,941 and the number of unvested shares held on 31 December 2020 to 1,005,408.
(3) In addition, Mr Engstrom has 29,498 AIP deferred shares (pre-tax) awarded in 2021 with a market price at award of £18.66. The release of these AIP deferred shares
in February 2024 is not subject to any further performance conditions. Including these AIP deferred shares increases the number of shares awarded during 2021 to
338,200 and the number of unvested shares held on 31 December 2021 to 985,808.
RELX Annual report and financial statements 2021 | Directors’ Remuneration ReportMarket segmentsGovernanceFinancial statements and other informationFinancial reviewCorporate ResponsibilityOverview 110
Nick Luff
OPTIONS
ESOS
Total
SHARES (1) (2)(3)
LTIP
Total
Year of
grant
2014
2015
2016
2017
Year of
grant
2018
2019
2020
2021
No. of
options
held on
1 Jan
2021
65,656
72,228
53,979
56,948
47,778
50,586
40,210
42,452
429,837
No. of
unvested
shares
held on
1 Jan 2021
87,996
87,585
152,029
133,066
460,676
No. of
options
granted
during
2021
No. of
shares
awarded
during
2021
151,487
151,487
Option
price on
date of
grant
£9.900
€11.378
£11.520
€15.003
£12.550
€15.285
£14.945
€16.723
Market
price per
share at
award
£14.915
€16.870
£17.698
£20.725
£18.660
No. of
options
exercised
during
2021
Market
price per
share at
exercise
No. of
shares
vested
during
2021
5,279
5,255
Market
price per
share at
vesting
£18.660
€21.335
10,534
No. of
options
held on
31 Dec
2021
65,656
72,228
53,979
56,948
47,778
50,586
40,210
42,452
429,837
No. of
unvested
shares
held on
31 Dec 2021
152,029
133,066
151,487
436,582
Unvested
options
vesting on
Options
exercisable
until
02 Sep 24
02 Sep 24
02 Apr 25
02 Apr 25
15 Mar 26
15 Mar 26
27 Feb 27
27 Feb 27
End of
performance
period
Date of
vesting
Dec 2021
Dec 2022
Dec 2023
Feb 2022
Feb 2023
Feb 2024
(1) In addition, Mr Luff has 21,269 AIP deferred shares (pre-tax) awarded in 2019 with a market price at award of £17.698. The release of these AIP deferred shares in February
2022 is not subject to any further performance conditions. Including these AIP deferred shares increases the number of shares awarded during 2019 to 173,298 and the
number of unvested shares held on 31 December 2019 to 489,783.
(2) In addition, Mr Luff has 18,079 AIP deferred shares (pre-tax) awarded in 2020 with a market price at award of £20.725. The release of these AIP deferred shares in February
2023 is not subject to any further performance conditions. Including these AIP deferred shares increases the number of shares awarded during 2020 to 151,145 and the
number of unvested shares held on 31 December 2020 to 500,024.
(3) In addition, Mr Luff has 17,370 AIP deferred shares (pre-tax) awarded in 2021 with a market price at award of £18.66. The release of these AIP deferred shares in February
2024 is not subject to any further performance conditions. Including these AIP deferred shares increases the number of shares awarded during 2021 to 168,857 and the
number of unvested shares held on 31 December 2021 to 493,300.
RELX Annual report and financial statements 2021 | Governance 111
Performance graphs
The graphs below show total shareholder returns for RELX calculated on the basis of the average share price in the 30 trading days
before the respective year end and assuming dividends were reinvested. RELX’s performance is compared with the FTSE 100.
The three-year chart covers the performance period of the 2019–2021 cycle of the LTIP.
3 years
5 years
10 years
RELX vs FTSE 100 – 3-YEAR TSR
RELX vs FTSE 100 – 5-YEAR TSR
RELX vs FTSE 100 – 10-YEAR TSR
%
175
150
125
100
75
50
25
0
+58%
∆=39%
+19%
%
225
200
175
150
125
100
75
50
25
0
+93%
∆=66%
+27%
%
700
600
500
400
300
200
100
0
+508%
∆=412%
+96%
D ec-18
D ec-19
D ec-20
D ec-21
D ec-16
D ec-17
D ec-18
D ec-19
D ec-20
D ec-21
D ec-11
D ec-12
D ec-13
D ec-14
D ec-15
D ec-16
D ec-17
D ec-18
D ec-19
D ec-20
D ec-21
RELX
FTSE 100
RELX
FTSE 100
RELX
FTSE 100
CEO historical pay table
The table below shows the historical CEO pay over a ten-year period.
£’000
Annualised base salary
Annual incentive payout
as a % of maximum
Multi-year incentive
vesting as a % of maximum
CEO total
2012
1,051
73%
2013
1,077
70%
2014
1,104
71%
2015
1,131
70%
2016
1,160
68%
2017
1,189
69%
2018
1,218
78%
2019
1,249
77%
2020
1,280
65%
2021
1,312
86%
70%(1)
96%(1)
90%(1)
97%(1)
97%(1)
92%(1)
81%(1)
81%(1)
6%
71%
11,145(2)
5,463
17,447(3)
11,416(4)
11,399(5)
8,748(6)
9,141(7)
9,346(8)
3,980(9)
9,634(10)
(1) The 2019, 2018, 2017, 2016 and 2015 percentages reflect BIP, LTIP and ESOS. The 2014 percentage reflects the final tranche of the Reed Elsevier Growth Plan (REGP),
BIP and ESOS. The 2013 percentage reflects BIP and ESOS only and the 2012 percentage reflects BIP and the first tranche of the REGP.
(2) The 2012 figure reflects the vesting of the first tranche of the REGP and includes the entire amount that was performance tested over the 2010–2012 period, including
the 50% of shares deferred until 2015 in accordance with the plan rules including £3m attributed to share price appreciation.
(3) The 2014 figure includes the vesting of the second and final tranche of the REGP and includes £8.8m attributed to share price appreciation.
(4) The 2015 figure includes £4.4m attributed to share price appreciation.
(5) The 2016 figure includes £4.2m attributed to share price appreciation.
(6) The 2017 figure includes £1.7m attributed to share price appreciation.
(7) The 2018 figure includes £2.2m attributed to share price appreciation.
(8) The 2019 figure includes £2.2m attributed to share price appreciation.
(9) The 2020 figure includes £80k attributed to share price appreciation. The share award value has been restated for actual share prices and exchange rates applicable
on the dates of vesting.
(10) The 2021 figure includes £1.2m attributed to share price appreciation.
RELX Annual report and financial statements 2021 | Directors’ Remuneration ReportMarket segmentsGovernanceFinancial statements and other informationFinancial reviewCorporate ResponsibilityOverview The Committee is satisfied that the overall picture presented
by the 2021 pay ratios is consistent with the pay, reward and
progression policies for the Group’s UK employees.
§ Salaries for all UK employees, including the Executive
Directors, are set based on a wide range of factors, including
market practice, scope and impact of the role and experience.
§ The provision of certain benefits and the level of benefit
provided vary depending on the role and level of seniority.
§ Participation in annual incentive plans varies by business
and reflects the culture and the nature of the business, as
well as role.
§ Whilst none of the comparator employees participate in the
executive share plans, they do have the opportunity to receive
company shares via the UK Sharesave Option Plan. A greater
proportion of performance-related variable pay and share
based awards applies to more senior executives, including
the Executive Directors, who have a greater influence over
performance outcomes.
Relative importance of spend on pay
The following table sets out the total employee costs for all
employees, as well as the amounts paid in dividends and
share repurchases.
Employee costs(1)
Dividends
Share repurchases
2021
£m
2,549
920
0
2020
£m
2,555
880
150
% change
-0.2%
+4.5%
N/A
(1) Employee costs include wages and salaries, social security costs, pensions and
share based and related remuneration.
Payments to past Directors and payments for loss of office
(audited)
There have been no payments for loss of office in 2021.
112
Comparison of change in Directors’ pay with change
in employee pay
The reporting regulations require companies to disclose the
percentage change in remuneration from 2020 to 2021 for each
director compared with the employees of the listed company,
excluding directors. RELX PLC has no employees and Executive
Directors are the only employees of RELX Group PLC. We therefore
have no data to report but have chosen to continue to report data
on changes in base salary of the CEO compared with changes in
base salary of a broader employee population. As in the previous
year, the salary increase for the CEO of 2.5% was in line with the
salary increase budget for the UK and the US where the majority
of our employees are based.
UK pay ratios
The UK Regulations 2018 require the disclosure of the ratio of total
CEO remuneration to median (P50), 25th percentile (P25) and 75th
percentile (P75) UK employee total remuneration (calculated on
a full-time equivalent basis). UK employees represent less than
20% of our global employee population.
Pay ratios for total remuneration are likely to vary, potentially
significantly, over time, since the CEO’s total remuneration each
year is driven largely by his performance-related pay outcomes
and is affected by share price movements. We have therefore
also shown the UK ratios for the salary component.
For the purposes of the ratios below, the CEO’s 2021 total
remuneration is the total single figure and salary as disclosed
on page 102. The P25, P50 and P75 were selected from the UK
employee population as at 1 October 2021. Ratios for prior
years are as disclosed in the respective reports.
Total remuneration
Year
2021
2020
2019
Salary
Year
2021
2020
2019
Pay ratios
All UK employees £’000
Method
P25
P50
P75
A 223:1
A
98:1
A 225:1
151:1
67:1
149:1
104:1
46:1
100:1
P25
£43
£40
£39
P50
£64
£59
£58
P75
£92
£86
£86
Pay ratios
All UK employees £’000
Method
A
A
A
P25
35:1
35:1
35:1
P50
25:1
25:1
25:1
P75
18:1
18:1
18:1
P25
£38
£37
£35
P50
£52
£52
£51
P75
£74
£72
£71
Slight differences compared with ratios calculated using data
shown in the tables are due to rounding.
The ratios are calculated using Option A, meaning that the
median, 25th and 75th percentiles were determined based on total
remuneration using the single total figure valuation methodology,
except for annual incentives (other than sales incentives) which
are based on estimated payout as individual final payout levels
are still to be finalised.
We chose Option A as we believe it is the most robust and accurate
way to identify the median, 25th percentile and 75th percentile
UK employee.
RELX Annual report and financial statements 2021 | Governance 113
Implementation of remuneration policy in 2022
Salary: The Committee has awarded a salary increase of 2.5% to
each Executive Director, which means that, from 1 January 2022,
Erik Engstrom’s salary rose to £1,344,889 and Nick Luff’s salary
to £791,962. This is in line with the guidelines for 2022 for the
general UK-based employee population.
Benefits: The benefits provided to the Executive Directors are
unchanged for 2022.
Annual incentive: The operation of the AIP in 2022 will be consistent
with 2021. The AIP payout at target performance is 135% of base
salary and the maximum 200% of base salary, with 50% of the
AIP earned deferred into shares. The weighting of the different
metrics is unchanged from 2021 with revenue, adjusted net
profit after tax and cash flow each having a weight of 30% and
non-financial a weight of 10%. Non-financial measures are
focused on sustainability metrics. We will again split the AIP
targets between RELX excluding RX and RX to prevent windfall
gains in case RX recovers from the effects of the pandemic more
quickly than anticipated (overall 2021 AIP payout would have been
higher in 2021 if AIP targets had not been split for the year). Details
of the 2022 annual financial targets and non-financial metrics will
be disclosed in the 2022 Remuneration Report.
Pension: Erik Engstrom’s Total Plan Fees for the legacy defined
benefit pension scheme were 30% of pensionable earnings in
2021 and will increase further to 35% in 2022. Mr Engstrom is also
subject to a 2% cap on annual increases in pensionable earnings.
From the end of 2022 he will cease to accrue further benefits
under this scheme and will receive pension benefits of equivalent
value to the level of pension benefits provided under the Company’s
regular defined contribution pension plans as may be in effect or
amended from time to time.
Nick Luff’s cash allowance in lieu of pension reduced from 18% in
2021 to 16% from January 2022 and from the end of 2022, he will
receive pension benefits of equivalent value to the level of pension
benefits provided under the Company’s regular defined contribution
pension plans as may be in effect or amended from time to time.
Share based awards: As in 2021, we will be granting LTIP awards
with face values of 450% of salary to Erik Engstrom and 375%
to Nick Luff in 2022. The awards are subject to a three-year
performance period and the net (after tax) vested shares
are to be retained for a further two-year holding period.
The following metrics, weightings, targets and vesting scales
apply to LTIP awards granted in 2022 for the 2022–2024 cycle.
The vesting of LTIP awards is dependent on three separate
performance measures: ROIC, EPS and TSR weighted
40%:40%:20% respectively and assessed independently.
The TSR measure comprises three comparators (sterling,
euro and US dollar) reflecting the fact that RELX accesses equity
capital markets through three exchanges – London, Amsterdam
and New York – in three currency zones. RELX’s TSR performance
is measured separately against each comparator group and
each ranking achieved will produce a payout, if any, in respect
of one-third of the TSR measure. The proportion of the TSR
measure that vests will be the sum of the three payouts.
The averaging period applied for TSR measurement purposes is
the three months before the start of the financial year in which the
award is granted and the last three months of the third financial
year of the performance period.
The companies for the TSR comparator groups for the 2022–2024
LTIP cycle were selected on the following basis (substantially
unchanged from prior year):
(a) they were in a relevant market index or were the largest
listed companies on the relevant exchanges at the end of the
year before the start of the performance period: the FTSE 100
for the sterling group; the Euronext100 (including the AEX)
and DAX30 for the euro group; and the S&P 500 for the
US dollar group;
(b) certain companies were then excluded:
§ those with mainly domestic or single country revenues
(as they do not reflect the global nature of RELX’s
customer base);
§ those engaged in extractive industries (as they are
exposed to commodity cycles); and
§ financial services companies (as they have a different
risk/reward profile).
(c) the remaining companies were then ranked by market
capitalisation and, for each comparator group, around
50 companies with market capitalisations above and
below that of RELX were taken; and
(d) relevant listed global peers operating in businesses similar
to those of RELX, but not otherwise included, were added.
Vesting percentage of each third
of the TSR tranche(1)
0%
25%
100%
TSR ranking within the relevant
TSR comparator group
Below median
Median
Upper quartile
(1) Vesting is on a straight-line basis for performance between the minimum and
maximum levels.
The calculation methodology for the EPS and ROIC measures
is set out in the 2013 Notices of Annual General Meetings, which
can be found on RELX’s website. The targets and vesting scales
applicable to the EPS and ROIC are set out below.
Vesting percentage
of EPS and ROIC
tranches(1)
0%
25%
50%
65%
75%
85%
92.5%
100%
Average growth
in adjusted EPS over
the three-year performance
period
below 5% p.a.
5% p.a.
6% p.a.
7% p.a.
8% p.a.
9% p.a.
10% p.a.
11% p.a. or above
ROIC in the third
year of the
performance period
below 11.0%
11.0%
11.5%
12.0%
12.5%
13.0%
13.5%
14% or above
(1) Vesting is on a straight-line basis for performance between the stated average
adjusted EPS growth/ROIC percentages.
RELX Annual report and financial statements 2021 | Directors’ Remuneration ReportMarket segmentsGovernanceFinancial statements and other informationFinancial reviewCorporate ResponsibilityOverview 114
Remuneration Committee advice
The Committee consists of independent Non-Executive Directors
and the Chair of RELX. Details of members and their attendance
are contained in the Corporate Governance Review on page 83.
The Chief Legal Officer and Company Secretary attends meetings
as secretary to the Committee. At the invitation of the Chair
of the Committee, the CEO attends appropriate parts of the
meetings. The CEO is not in attendance during discussions
about his remuneration.
The Chief Human Resources Officer advised the Committee
during the year.
Willis Towers Watson is the external adviser, appointed by the
Committee through a competitive process. Willis Towers Watson
also provided actuarial and other human resources consultancy
services to some RELX companies during the year. The Committee
is satisfied that the firm’s advice continues to be objective and
independent, and that no conflict of interest exists. The individual
consultants who work with the Committee do not provide advice
to the Executive Directors or act on their behalf. Willis Towers
Watson is a member of the Remuneration Consultants’ Group
and conducts its work in line with the UK Code of Conduct for
executive remuneration consulting. During 2021, Willis Towers
Watson received fees of £9,000 for advice given to the Committee,
charged on a time and expense basis.
Shareholder voting at 2021 Annual General Meeting
At the Annual General Meeting of RELX PLC on 22 April 2021, votes cast by proxy and at the meeting in respect of the Directors’
Remuneration Report were as follows:
Resolution
Remuneration Report (advisory)
Votes For
1,468,935,889
% For
92.45%
Votes Against
119,930,775
% Against
Total votes cast
7.55% 1,588,866,664
Votes Withheld
27,861,306
At the Annual General Meeting of RELX PLC on 23 April 2020, votes cast by proxy and at the meeting in respect of the Directors’
Remuneration Policy were as follows:
Resolution
Remuneration Policy (binding)
Votes For
1,507,700,939
% For
93.42%
Votes Against
106,174,539
% Against
Total votes cast
6.58% 1,613,875,478
Votes Withheld
690,971
Wolfhart Hauser
Chair, Remuneration Committee
9 February 2022
RELX Annual report and financial statements 2021 | Governance 115
Remuneration Policy Report
Set out in this section is the Company’s Remuneration Policy for Directors, as approved by shareholders at the 23 April 2020 Annual
General Meeting, and which is intended to apply for three years from the AGM and to awards granted from the first quarter of 2021.
The policy is as reported in the 2019 annual report.
Remuneration policy table – Executive Directors
All footnotes to the policy table can be found on page 118.
ANNUAL BASE SALARY
Purpose and link to strategy
To recruit and retain the best executive talent globally to execute our strategic objectives at appropriate cost.
Operation
Salaries for Executive Directors are set and reviewed annually by the Remuneration Committee (the Committee) with changes typically
taking effect on 1 January. In exceptional circumstances, the Committee may review salaries more frequently.
When reviewing salaries, the Committee considers the executive’s role and sustained value to the Company in terms of skill, experience
and overall contribution and the Company’s guidelines for salaries for all employees for the year. Periodically, competitiveness with
companies which are comparable in respect of industry, size, international scope and complexity is also considered in order to ensure
the Company’s ability to attract and retain executives.
For the last eight years, Executive Directors’ salary increases have been 2.5% per annum.
Performance framework
N/A
Maximum value
Salary increases will continue to be aligned with the range of increases for the wider employee population and subject to annual
all-employee guidelines. However, as for all employees, the Committee has discretion to exceed this to take account of individual
circumstances such as change in responsibility, increases in scale or complexity of the business, inflation or alignment to market level.
Recovery of sums paid
No provision.
RETIREMENT BENEFITS
Purpose and link to strategy
Retirement plans are part of remuneration packages designed to recruit and retain the best executive talent at appropriate cost.
Operation
Policy for new appointments
Executive Directors appointed after the effective date of this policy will receive pension benefits up to the value equivalent to the
maximum level of pension benefits provided under the Company’s regular defined contribution pension plans as may be in effect or
amended from time to time (currently capped at 11% of base salary in the UK). The defined contribution pension plans are designed to
be competitive and sustainable long-term. Any amount payable may be paid wholly or partly as cash in lieu and may be subject to tax
and social security deductions in various jurisdictions.
Transition arrangements for existing Executive Directors
The existing directors will transition from their current arrangements to the above new appointment policy by the end of 2022.
The CFO currently receives a company contribution paid as cash in lieu of pension. The CFO’s company contribution decreased by five
percentage points to 20% of base salary from January 2020 and further decreases to 18% from January 2021, to 16% from January 2022
and from the end of 2022, he will be subject to the above new appointment policy (currently capped at 11% of base salary in the UK).
The CEO is a member of a UK legacy defined benefit pension scheme, accruing 1/30th of final year pensionable earnings for each year
(pro-rated for part years) of service, with a normal retirement age of 60. In line with all UK defined benefit scheme members, the CEO’s
contributions to the plan and fees he pays to participate in the plan (together the ‘Total Plan Fees’) have been increasing annually since
2011. However, the CEO now pays a higher percentage of pensionable earnings as Total Plan Fees in each calendar year than other
legacy members. In 2019, his Total Plan Fees were 20% of pensionable earnings, up from 12.5% in 2018. His total Plan Fees are 25% in
2020 and increase to 30% in 2021 and to 35% in 2022. A cap applies of 2% per annum on the increase in the CEO’s pensionable earnings
(in place since 2017). Like all other members of the legacy defined benefit pension scheme, the CEO is allowed to switch to the defined
contribution plan at any time. At the end of 2022, the CEO will cease to accrue any further benefits under the legacy defined benefit
pension scheme. After 31 December 2022, he will be subject to the above new appointment policy (currently capped at 11% of base
salary in the UK).
Performance framework
N/A
RELX Annual report and financial statements 2021 | Directors’ Remuneration ReportMarket segmentsGovernanceFinancial statements and other informationFinancial reviewCorporate ResponsibilityOverview 116
RETIREMENT BENEFITS CONTINUED
Maximum value
Policy
For Executive Directors hired or promoted to the Board after the effective date of this policy, the maximum value is equivalent to the
maximum level of pension benefits provided under the Company’s regular defined contribution pension plans as may be in effect
or amended from time to time (currently capped at 11% of base salary in the UK).
Transition arrangements for existing Executive Directors
For the current CFO, until 31 December 2022, the maximum values applicable are in accordance with the annual reductions in the
company contribution as detailed above under ‘Operation’. After 31 December 2022, he will be subject to the pension policy and
maximum value described above for new appointments.
For the current CEO, the maximum value under the legacy defined benefit scheme is an accrual of 1/30th of final year pensionable
earnings for every year of service until 31 December 2022, minus his applicable annual Total Plan Fees paid whilst accruing the benefit.
As noted above under ‘Operation’, the CEO is subject to increases in the Total Plan Fees which he pays annually as part of his ongoing
membership of this scheme until 31 December 2022, after which he will be subject to the pension policy and maximum value
described above for new appointments.
Recovery of sums paid
No provision.
OTHER BENEFITS
Purpose and link to strategy
To provide competitive benefits at appropriate cost.
Operation
Other benefits, subject to periodic review, may include private medical and dental cover, life assurance, tax return preparation costs,
car benefits, directors’ and officers’ liability insurance, relocation benefits and expatriate allowances and other benefits available to
employees generally, including, where appropriate, the tax on such benefits.
Performance framework
N/A
Maximum value
The maximum for ongoing benefits for Executive Directors will not normally exceed 10% of salary (excluding any one-off items, such as
immigration support or relocation benefits, and any tax related charge on benefits which is met by the Company). However, the Committee
may provide reasonable benefits beyond this amount in exceptional situations, such as a change in the individual’s circumstances
caused by the Company, or if there is a significant increase in the cost of providing the agreed benefit.
ANNUAL INCENTIVE PLAN (AIP)
Purpose and link to strategy
The annual incentive provides focus on the delivery of annual financial targets and the achievement of annual objectives and milestones
which are chosen to align with the Company’s strategy and create a platform for sustainable future performance. The compulsory
deferral of 50% of any annual incentive earned into RELX shares for three years promotes longer-term alignment of Executive
Directors’ interests with shareholders’ interests, including an element of post-termination shareholding.
Why performance measures are chosen and how targets are set
Performance measures include a balanced set of financial measures which are appropriately weighted and which support current
strategy and incentivise the Executive Directors to achieve the desired outcomes without undue risk of focusing on any one financial
measure. The financial targets are designed to be challenging and are set with reference to the previous year’s performance and
internal and external forecasts for the following year.
Performance measures may also include non-financial measures, for example linked to sustainability.
Operation
The Committee reviews and sets the financial targets and, if applicable, non-financial targets, annually, taking into account internal
forecasts and strategic plans. Following year end, the Committee compares actual performance with the financial targets and assesses
the achievement of any non-financial targets. The targets and outcomes are fully disclosed in the Remuneration Report published after
year end.
50% of any annual incentive earned is paid in cash to the Executive Director and the remaining 50% is deferred into RELX shares, which
are released to the Executive Director after three years. Dividend equivalents accrued during the deferral period are payable in respect
of the shares. On a change in control, the default position is that deferred shares are released to the Executive Director. Alternatively,
the Committee may determine that deferred shares will instead be exchanged for equivalent share awards in the acquiring company.
RELX Annual report and financial statements 2021 | Governance 117
AIP CONTINUED
Performance framework
The AIP includes financial measures with a weighting of at least 85% and may also include non-financial measures with a weighting
of up to 15%. Each measure is assessed separately.
§ The minimum payout is zero.
§ Each measure is assessed independently and payout for each measure at threshold is 10% of the maximum opportunity for that
measure. If the financial measures have a weighting of 100% and threshold is reached for each of the financial measures, the overall
payout for the financial measures is 13.5% of salary. If the financial measures have a weighting of 85% and threshold is reached for
each of the financial measures, the overall payout for the financial measures is 11.5% of salary.
§ Payout for target performance is 135% of salary.
Following an assessment of financial achievement, and scoring of any non-financial measures, the Committee agrees the overall level
of earned incentive for each Executive Director.
Committee discretion applies.1,2,3
Maximum value
The maximum potential annual incentive is 200% of annual base salary. This includes the deferred share element but excludes dividend
equivalents payable in respect of the deferred shares.
Recovery of sums paid
Claw-back applies.4
LONG TERM INCENTIVE PLAN (LTIP)
Purpose and link to strategy
The Long-Term Incentive Plan (LTIP) is designed to provide a long-term incentive for Executive Directors to achieve the key performance
measures that support the Company’s strategy, and to align their interests with shareholders.
Why performance measures are chosen and how targets are set
Our strategic focus is on continuing to transform the core business through organic investment and the build-out of new products into
adjacent markets and geographies, supplemented by selective portfolio acquisitions and divestments. The performance measures in
the LTIP are chosen to support this strategy by focusing on sustained earnings growth, return on invested capital and shareholder return.
Targets are set with regard to previous results and internal and external forecasts for the performance period and the strategic plan for
the business. They are designed to provide exceptional reward for exceptional performance, whilst allowing a reasonable expectation
that reward at the lower end of the scale is attainable, subject to robust performance.
Operation
Annual awards of performance shares, with vesting subject to:
§ performance measured over three financial years
§ continued employment (subject to the provisions set out in the Policy on payments for loss of office section)
§ meeting shareholding requirements (450% of salary for the CEO and 300% of salary for the CFO)
Executive Directors are to retain their net (after tax) vested shares for a holding period of two years after vesting. Dividend equivalents
accrued during the performance period are payable in respect of the performance shares that vest.
On a change of control, the default position is that awards vest on a pro-rated basis, subject to an assessment of performance against
targets at that time. Alternatively, the Committee may determine that the awards will not vest and will instead be exchanged for
equivalent awards in the acquiring company.
Performance framework
The performance measures are EPS, ROIC and relative TSR, weighted 40%:40%:20% respectively and assessed independently,
such that a payout can be received under any one of the measures (or, for TSR, in respect of one of the three comparator groups).
§ The minimum payout is zero.
§ Each measure is assessed independently and payout for each measure at threshold is 25% of the maximum opportunity for that
measure. If only one measure vests at threshold, and it has a weighting of 40%, then the overall payout would be 10% of the maximum
award. If only one measure with a weighting of 20% vests at threshold, the overall payout would be 5% of the maximum award.
§ Payout in line with expectations is 50% of the maximum award.
Dividend equivalents are not taken into account in the above payout levels.
Committee discretion applies.1,2,3
Maximum value
The maximum grant in any year is up to 450% of base salary for the CEO and up to 375% of base salary for other Executive Directors
(not including dividend equivalents).
Recovery of sums paid
Claw-back applies.4
RELX Annual report and financial statements 2021 | Directors’ Remuneration ReportMarket segmentsGovernanceFinancial statements and other informationFinancial reviewCorporate ResponsibilityOverview 118
Notes to the Remuneration policy table
(1)
Discretion in respect of AIP and LTIP payout levels: In determining the level of payout under the AIP and vesting under the LTIP, the
Committee takes into account RELX’s overall business performance and value created for shareholders over the period in review
and other relevant factors. It has discretion to adjust the vesting and payout levels (subject always to the maximum individual limits)
if it believes this would result in a fairer outcome. This discretion will only be used in exceptional circumstances and the Committee
will explain in the next Remuneration Report the extent to which it has been exercised and the reasons for doing so.
Discretion to vary performance measures under the AIP and the LTIP: The Committee may vary the financial measures applying to a
current annual incentive year and performance measures for LTIP awards already granted if a change in circumstances leads it to believe
that the arrangement is no longer a fair measure of performance. Any new measures will not be materially less, or more, challenging than
the original ones.
Discretion on termination of employment under the AIP and the LTIP: The Committee’s discretion on termination of employment is
described under the ‘Policy on payments for loss of office’ section on page 120.
Malus and claw-back under the AIP and the LTIP: Under the AIP and the LTIP, the Committee has discretion to apply malus and claw-back
(i) if the payout (including the AIP deferred shares element) was calculated on the basis of materially misstated financial or other data, in
which case it can withhold a payout and can seek to recover the difference in value between the incorrect payout and the amount that would
have been paid had the correct data been used or (ii) if there has been serious misconduct on the part of the individual, in which case the
Committee may withhold an AIP payout, lapse unvested LTIP awards and may require repayment of AIP and LTIP gains arising during a
specified period. Under the LTIP, the Committee also has discretion to apply malus and claw-back if a participant breaches post-termination
restrictive covenants, in which case unvested awards would lapse and the Committee may require repayment of gains arising during the
period beginning six months before termination and ending on the date the post-termination restrictive covenants are stated to expire.
Explanation of differences between the Company’s policy on Executive Directors’ remuneration and the policy for other employees:
Incentives: A larger percentage of Executive Directors’ remuneration is performance related than that of other employees. All managers
participate in an annual incentive plan, but participation levels, measures and targets vary according to their role, seniority and local
business priorities. Approximately 100 senior executives currently participate in the LTIP and about 1,000 participate in the Executive
Share Option Scheme (ESOS). Grant levels under the plans vary according to role and seniority. In considering the remuneration policy
for Executive Directors, under which the Executive Directors only participate in the AIP and the LTIP, the Committee considered the
incentive plan participation for the wider senior management population. Other benefits: The range and level of retirement and other
benefits provided to employees may vary according to local market practice, role and seniority. This is to ensure that we provide competitive
packages which are appropriate to specific roles. However, as noted above in the pension section of the policy table, the proposed policy on
Executive Directors’ pension arrangements results in alignment of the maximum values of pension benefits for newly appointed Executive
Directors and the wider workforce following shareholder approval of the remuneration policy and for existing Executive Directors by the
end of 2022.
Changes to pay components: The changes which were made since the previous remuneration policy, together with the rationale for the
changes, are described in the Committee Chair’s introduction on pages 88 and 89 of the 2019 Annual Report.
(2)
(3)
(4)
(5)
(6)
Remuneration outcomes in different performance scenarios
The Committee considers the level of remuneration that may be paid in the context of the performance delivered and value added for
shareholders. The charts below are an illustration of how the CEO’s and CFO’s regular annual remuneration could vary under different
performance scenarios. The salary, benefits and pension levels are the same in all three scenarios in each chart. Salary is based on 2020
salary. Benefits is based on the 2019 Single Total Figure table. Pension, annual incentive and LTIP are all based on full implementation of
all aspects of the policy table’s award levels and percentages (including 11% pension), applied to the 2020 salary. Annual incentive amounts
include the portion which is subject to compulsory deferral into RELX shares for three years. The performance assumptions which have
been used are as follows: Minimum means no AIP payout and no LTIP vesting. In line with expectations means AIP payout at 135% of salary
(of which a portion is deferred into shares) and LTIP vesting at 50% of the award. Maximum means AIP payout at 200% of salary (of which
a portion is deferred into shares) and LTIP vesting at 100% of the award. The three bars in each chart assume no share price movement.
As required by the UK Regulations, assuming maximum performance achievement (as described above) and 50% share price growth
over the performance period, the CEO’s maximum remuneration would increase to £12.7m and the CFO’s maximum remuneration to
£6.6m. Any dividend equivalents payable in respect of the AIP deferred shares and the LTIP are not included.
CEO remuneration (£’000)
CFO remuneration (£’000)
9,828
59%
26%
15%
6,115
47%
28%
25%
1,507
100%
Minimum
In line with
expectations
Maximum
LTIP
AIP cash and deferred shares
Salary, benefits, pension
LTIP
AIP cash and deferred shares
Salary, benefits, pension
5,186
55%
29%
16%
3,282
43%
31%
26%
In line with
expectations
Maximum
851
100%
Minimum
RELX Annual report and financial statements 2021 | Governance 119
Approach to recruitment remuneration – Executive Directors
When agreeing the components of a remuneration package on the appointment of a new Executive Director, or an internal promotion
to the Board, the Committee would seek to align the package with the remuneration policy stated in the policy table.
The Committee’s general principle on recruitment is to offer a competitive remuneration package to attract high-calibre candidates
from a global talent pool. Basic salary would be set at an appropriate level for the candidate, taking into account all relevant factors.
As a data analytics and technology-driven business, with half of its revenue in the US, the Company primarily competes for talent
with global information and technology companies.
The various components and the Company’s approach are as follows:
Standard package on recruitment*
To offer remuneration in line with the policy table (including the limits), taking into account the principles set out above.
Compensation for forfeited entitlements
The Committee may make awards and payments on hiring an external candidate to compensate him or her for entitlements forfeited
on leaving the previous employer. If such a decision is made, the Committee will attempt to reflect previous entitlements as closely as
possible using a variety of tools, including cash and share based awards. Malus and claw-back provisions will apply where appropriate.
If necessary to facilitate the grant of awards, the Committee may rely on the one person exemption from shareholder approval in the UK
Listing Rules.
Relocation allowances and expenses
The type and size of relocation allowances and expenses will be determined by the specific circumstances of the new recruit.
* The standard package comprises annual base salary, retirement benefits, other benefits, AIP and LTIP.
Shareholding requirement
The Executive Directors are subject to shareholding requirements. These are a minimum of 450% of annual base salary for the CEO and
300% of annual base salary for other Executive Directors. On joining or promotion to the Board, Executive Directors are given a period of
time, typically up to five years, to build up to their requirement. On termination of employment, Executive Directors are to maintain their
full shareholding requirement (or, if lower, their actual level of shareholding at the time of leaving) for two years after leaving employment.
Shares which count for shareholding purposes are shares beneficially owned by the Executive Director, their spouse, civil partner or
dependent child and AIP deferred shares which are within their three-year deferral period, on a notional net of tax basis.
Policy on payments for loss of office
In line with the Company’s policy, the service contracts of the existing Executive Directors contain 12-month notice periods.
The circumstances in which an Executive Director’s employment is terminated will affect the Committee’s determination of any payment
for loss of office, but it expects to apply the principles outlined in the table on the next page. The Committee reserves the right to depart
from these principles where appropriate in light of any taxation requirements to which the Company or the Executive Director is subject
(including, without limitation, section 409A of the US Internal Revenue Code), or other legal obligations.
RELX Annual report and financial statements 2021 | Directors’ Remuneration ReportMarket segmentsGovernanceFinancial statements and other informationFinancial reviewCorporate ResponsibilityOverview 120
Policy on payments for loss of office (continued)
GENERAL1
INCENTIVES
Mutually agreed termination/termination by the Company other than for cause2
(includes retirement with customary notice)
The Executive Director would be entitled to salary, benefits and
other contractual payments in the normal way up to the termination
date and would be paid for any accrued but untaken holiday.
Salary: Payment of up to 12 months’ salary to reflect the notice
period or payment in lieu of notice.
Other benefits: Where possible, benefits would be continued for
up to the duration of any unworked period of notice (not exceeding
the maximum stated in the policy table) or the Executive Director
would receive a cash payment (not exceeding the cost to the
Company of providing those benefits).
Pension: Deferred or immediate pension in accordance with
scheme rules, with a credit in respect of, or payment for up to,
the full period of any unworked period of notice. There is provision
under the defined benefit pension scheme for members leaving
Company service by reason of permanent incapacity to make an
application to the scheme trustee for early payment of their pension.
Other: The Company may pay compensation in respect of any
statutory employment rights and may make other appropriate
and customary payments.
The Company would have due regard to principles of mitigation
of loss. Reductions would be applied to reflect any portion of the
notice period that is worked and/or spent on gardening leave.
On injury, disability, ill-health or death, the Committee reserves
the right to vary the treatment outlined in this section.
Employee instigated resignation
The Executive Director would not receive any payments for
loss of office. The Executive Director would be entitled to salary,
benefits and other contractual payments in the normal way up
to the termination date and would be paid for any accrued but
untaken holiday.
Pension: A deferred or immediate pension would be payable
in accordance with the scheme rules.
Dismissal for cause
The Executive Director would be entitled to salary, benefits
and other contractual payments in the normal way up to the
termination date and would be paid for any accrued but untaken
holiday but would not receive any payments for loss of office.
Pension: A deferred or immediate pension would be payable
in accordance with the scheme rules.
Annual incentive: Any unpaid annual incentive for the previous year
and a pro-rata payment in respect of the part of the financial year
up to the termination date would generally be payable (subject
to the deferral provisions), with the amount being determined
by reference to the original performance criteria. However,
the Committee has discretion to decide otherwise depending
on the reason for termination and other specific circumstances.
The Company would not pay any annual incentive in respect of any
part of the financial year following the termination date (e.g. for
any unworked period of notice). AIP deferred shares would be
released to the Executive Directors in full at the end of the deferral
period. The annual incentive claw-back provisions would apply.
LTIP: The default position is that unvested LTIP awards would
be pro-rated to reflect time employed and would vest subject to
performance measured at the end of the relevant performance
period and subject to the Executive Director continuing to
meet his full shareholding requirement for two years after the
termination date. The Committee has discretion to allow unvested
LTIP awards to vest earlier and to adjust the application of time
pro-rating and performance conditions, subject to the plan rules.
The requirement to retain net (after tax) vested LTIP shares for
a holding period of two years after vesting ceases to apply on
termination of employment.
Annual incentive: The Executive Director would be entitled to receive
an annual incentive for a completed previous year (subject to
the deferral provisions), but not a pro-rated annual incentive
in respect of a part year up to the termination date, unless the
Committee decides otherwise in the specific circumstances.
Any AIP deferred shares would be released to the Executive
Director in full at the end of the deferral period. Annual
incentive claw-back provisions would apply.
LTIP: All outstanding LTIP awards would lapse on the date of notice.
Annual incentive: The Executive Director would not receive any
unpaid annual incentive. Any AIP deferred shares lapse on the
date of dismissal.
LTIP: All outstanding LTIP awards would lapse on the date
of dismissal.
(1) In addition to what is set out in this section, on termination for any reason, Erik Engstrom will be entitled to payment of amounts held in his ‘Retirement Account’.
Before he joined the Company’s UK defined benefit scheme, he was not a member of any company pension scheme and RELX made annual contributions of 19.5%
of base salary to a deferred compensation plan. Contributions to this Retirement Account ceased when he became a member of the UK defined benefit arrangement.
(2) In cases where the approved leaver treatment applies, the AIP and LTIP have a default position as well as giving the Committee discretion to adjust the default treatment
within certain parameters. The Committee would only expect to exercise such discretion where the Committee believes the personal circumstances of the Executive
Director so require.
RELX Annual report and financial statements 2021 | Governance 121
Remuneration policy table – Non-Executive Directors
FEES
Purpose and link to strategy
To enable RELX to recruit Non-Executive Directors with the right balance of personal skills and experience to make a major contribution
to the Board and Committees of a global business which is listed in London, Amsterdam and New York.
Operation
RELX Chair: Receives an aggregate annual fee with no additional fees, for example, Committee Chair fees. The Committee determines
the Chair’s fee on the advice of the Senior Independent Director.
Other Non-Executive Directors: Receive an annual fee with additional fees payable as appropriate for specific roles and duties.
These additional fees include fees for the Senior Independent Director and Committee Chairs, for membership of Board Committees,
as well as a workforce engagement fee and international travel fees. In future, other fees may be payable, for example attendance fees.
The Board determines the level of fees, subject to applicable law.
Fees may be reviewed annually, although in practice they have changed on a less frequent basis. When reviewing fees, consideration
is given to the time commitment required, the complexity of the role and the calibre of the individual. Periodically, comparative market
data is also reviewed, the primary source for which is the practice of FTSE 30 companies, with reference also to the Euronext
Amsterdam (AEX) index and US-listed companies.
Maximum value
The aggregate annual fee limit for fees paid to the Chair and the Non-Executive Directors is £2m. Additional fees for membership of or
chairing Board Committees and assuming additional responsibilities such as acting as Senior Independent Director, are not subject
to this maximum limit.
OTHER BENEFITS
Purpose and link to strategy
To provide competitive benefits at appropriate cost.
Operation
Other benefits for Non-Executive Directors are reviewed periodically and may include private medical cover, tax return preparation
costs, secretarial benefits, car benefits, travel and related subsistence costs, including, where appropriate, the tax on such benefits.
Maximum value
There is no prescribed maximum amount.
Approach to recruitment remuneration –
Non-Executive Directors
Following recruitment, a new Non-Executive Director will
be entitled to fees and other benefits in accordance with the
Company’s remuneration policy. No additional remuneration
is paid on recruitment. However, any reasonable expenses
incurred during the recruitment process will be reimbursed.
Policy on payments for loss of office – Non-Executive Directors
In addition to unpaid accrued fees, the Non-Executive Directors
are entitled to receive one month’s fees for loss of office if their
appointment is terminated before the end of its term.
Service contracts and letters of appointment
There are no further obligations in the Directors’ service contracts
and letters of appointment which are not otherwise disclosed in
this Report which could give rise to a remuneration payment or
loss of office payment. All Directors’ service contracts and letters
of appointment are available for inspection at the Company’s
registered office. The Executive Directors’ service contracts
do not have a fixed expiry date.
Consideration of employment conditions elsewhere in the Company
When the Committee reviews the Executive Directors’ salaries
annually, it takes into account the Company’s guidelines for
salaries for all employees in the Company’s major operating
locations for the forthcoming year. The Committee also considers
market practice in the FTSE 30 as well as pay practices of other
global information and technology companies when determining
the quantum and structure of Directors’ pay.
Since 2019, the Committee annually reviews various aspects of
workforce remuneration and related policies in order to deepen
its understanding of pay structures throughout the organisation.
Also since 2019, our designated non-executive director responsible
for workforce engagement meets with employees representing our
global employee population in order to understand a wide-range
of employee views on a variety of topics. The feedback is reported
back to the Board at least once per year and forms part of the
Board’s discussions and decision making. As part of this process,
the non-executive director responsible for workforce engagement
explains how executive remuneration aligns with wider pay policy.
Consideration of shareholder views
Our practice is to consult shareholders and consider their views
when formulating, or changing, our policy. The Committee
consulted extensively with shareholders (representing c60%
of the Company’s issued share capital) and shareholder
representative bodies on the proposed new remuneration
policy. We were grateful for the constructive feedback, which
was taken into account in our final proposals.
Previous remuneration policy and prior commitments
Any payments which are still to be made under arrangements
made and awards granted under previous remuneration policies
(which are included in the 2013 and 2016 Annual Reports and
Financial Statements) will be made consistent with the applicable
policy. The provisions of the previous policies which relate to
arrangements and awards granted under those previous policies
will therefore continue to apply until all payments in relation to
those arrangements and awards have been made. The Committee
also reserves the right to make any remuneration or loss of office
payments if the terms were agreed prior to the approval of the 2013
or 2016 policy or prior to an individual being appointed as a Director.
Minor amendments
The Committee may make minor amendments for regulatory,
tax or administrative purpose.
RELX Annual report and financial statements 2021 | Directors’ Remuneration ReportMarket segmentsGovernanceFinancial statements and other informationFinancial reviewCorporate ResponsibilityOverview 122
Report of the Audit Committee
This report has been prepared by the Audit Committee of RELX PLC and has been approved by the Board. It provides an overview of the
membership, responsibilities and activities of the Committee.
Membership
Responsibilities
The Committee comprises at least three independent
Non-Executive Directors. The members of the Committee
who served during the year were:
§ Suzanne Wood (Chair of the Committee)
§ Andrew Sukawaty
§ June Felix
§ Charlotte Hogg (since 28 July 2021)
§ Marike van Lier Lels (member until 28 July 2021)
Of the current members of the Committee, Suzanne Wood,
a US chartered accountant, is considered to have significant,
recent and relevant financial experience.
The Committee as a whole is deemed to have competence
relevant to the sectors in which RELX operates.
Please see pages 72 and 73 for full profiles of Audit
Committee members.
The main role and responsibility of the Committee is to assist
the Board in fulfilling its oversight responsibilities regarding:
§ the integrity of the interim and full-year financial
statements and financial reporting processes;
§ risk management and internal controls, and the
effectiveness of the internal auditors; and
§ the performance of the external auditors and the
effectiveness of the external audit process, including
monitoring the independence and objectivity of
Ernst & Young.
The Committee reports to the Board on its activities,
identifying any matters in respect of which it considers
that action or improvement is needed and making
recommendations as to the steps to be taken.
The terms of reference of the Audit Committee are reviewed
annually and a copy is published on the RELX website,
www.relx.com
Financial reporting
In discharging its responsibilities in respect of the 2021 interim and full-year financial statements, the Committee reviewed the following:
AREAS OF SIGNIFICANT JUDGEMENT AND ESTIMATION
Specific areas of significant judgement and estimation focused on by the Committee were:
PAGE REFERENCE
IN ANNUAL REPORT
§ Acquired intangible assets: The identification of separate intangible assets on acquisition requires judgement.
Estimation is required in determining the future cash flows and discount rates used to value these assets.
The Committee received and discussed reports from the RELX Financial Controller on the methodology
and the basis of the assumptions used.
§ Capitalisation of internally developed intangible assets: The capitalisation of costs related to the development
of new products and business infrastructure, together with the useful economic lives applied to the resulting
assets, requires the exercise of judgement. The Committee received reports from the RELX Financial
Controller on the amounts capitalised and asset lives selected for major projects;
§ Taxation: The valuation of provisions in relation to uncertain tax positions involves estimation. The Committee
received and discussed reports from the RELX Head of Taxation on the potential liabilities identified and
assumptions used;
162-164
162-164
155-158
§ Defined benefit pension obligation: The valuation of certain pension scheme liabilities and assets is subject to
judgement and estimation. The Committee received and discussed reports from the RELX Financial Controller
on the methodology and the basis of the assumptions used.
150-153
The Committee was satisfied that all judgements and estimations had been appropriately made.
RELX Annual report and financial statements 2021 | Governance
OTHER AREAS OF FOCUS
Other areas discussed by the Committee during the year were:
123
PAGE REFERENCE
IN ANNUAL REPORT
§ Carrying value of goodwill and intangible assets: The Committee received and discussed reports from the
162-164
RELX Financial Controller on the methodology used for the annual impairment review including the basis of the
assumptions used such as discount rates and long-term growth.
Specific Covid-19 areas discussed by the Committee during the year were:
§ Exhibitions exceptional costs charged in 2020: The utilisation of the provision in 2021, for exceptional costs
recorded in 2020, relating to cancelled events and restructuring was reviewed to ensure appropriate.
145-147
The Committee was satisfied that all the above items had been appropriately considered and presented in
the Annual Report.
DISCLOSURE AND PRESENTATION
PAGE REFERENCE
IN ANNUAL REPORT
As well as considering the Annual Report as a whole (see ‘Fair, balanced and understandable’ section below)
the Committee focused on the following areas of disclosure and presentation:
§ Reviewed the critical accounting policies and compliance with applicable accounting standards, reviewed
143
other disclosure requirements and received regular update reports on accounting and regulatory
developments;
§ Reviewed the disclosures made in relation to internal control, risk management, the going concern statement
and the viability statement. The Committee received and discussed reports from the RELX Head of Audit and
Risk Management and the RELX Treasurer on the processes undertaken and assumptions used in formulating
these disclosures. The going concern and viability statements were subject to an in-depth review, including a
detailed review and challenge of the various adverse scenarios modelled to ensure that the statements made
in relation to going concern and viability are robust;
91-96
§ Considered the calculation and presentation of alternative performance measures in the Annual Report and
60-65, 192-200
Accounts and results announcement, including associated reconciliations to GAAP measures.
§ Reviewed the disclosures made for the first time in the Annual Report in relation to the TCFD’s
55-57
recommendations.
The Committee was satisfied that all relevant disclosures have been appropriately made.
FAIR, BALANCED AND UNDERSTANDABLE
The Committee considered whether the 2021 Annual Report is fair, balanced and understandable. In making this assessment,
the Committee considered the following areas:
§ The process for preparing the Annual Report, including the contributors, the internal review process and how feedback is
addressed throughout the process;
§ The business review narratives presented for each business area;
§ The discussion of reported and underlying results throughout the report.
The Committee was satisfied that, taken as a whole, the Annual Report is fair, balanced and understandable. This conclusion has
been reported to the Board.
The Committee also received detailed written and verbal reports from the external auditors on these matters. The Committee was satisfied
with the explanations provided and conclusions reached.
Risk management and internal controls
With respect to their oversight of risk management and internal controls, the Committee has:
§ received and discussed regular reports summarising the status of the Group’s risk management activities, including the impact
of Covid-19, identification of emerging risks and actions to mitigate risks, and the findings from internal audits and status of actions
agreed with management. Areas of focus in 2021 included: cyber security(including the ability to prevent, respond to and recover
from a cyber-attack or ransomware attack); data privacy; the operational, financial and IT control environment including controls
required as a result of home-working and return to office plans; the use of technology including machine learning; regulatory
compliance; business continuity and resilience (including supplier resilience and plans for extreme weather events); post-
acquisition integration; integrity of published ESG data; and continued compliance with the requirements of Section 404 of
the US Sarbanes-Oxley Act relating to the documentation and testing of internal controls over financial reporting.
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124
§ received regular updates from the RELX Treasurer on the
Group’s financial position including on liquidity, compliance
with the financial covenant in its revolving credit agreement,
credit ratings and ability to access debt capital markets, risk
management and compliance with treasury policies
and pension arrangements and funding;
§ reviewed and approved the internal audit plan for 2022 and
monitored execution of the 2021 plan, including progress in
respect of actions agreed;
§ reviewed the resources, terms of reference and effectiveness
of the RELX risk management and internal audit functions;
§ received presentations from: the RELX Chief Compliance
Officer on the compliance programmes, including the
operation of the RELX Code of Conduct, training programmes
and whistleblowing arrangements, and the RELX Chief Legal
Officer on legal issues and claims;
§ received presentations from the RELX Head of Taxation on tax
policies and related matters;
§ received regular updates from the RELX Chief Financial Officer
on developments within the finance function; and received an
update on Information Security Assurance.
In July 2021, the Group received a letter from the Corporate
Reporting Review team at the Financial Reporting Council (FRC)
in relation to its review of the Annual Report and Financial
Statements for the year ended 31 December 2020. The FRC
requested further information in respect of uncertain tax positions.
The Committee reviewed and approved the Group’s response to the
FRC who have subsequently confirmed in writing they have closed
their enquiry.
An FRC review provides no assurance that RELX’s Annual Report
and Financial Statements 2020 was correct in all material respects.
The FRC’s role was not to verify the information provided but to
consider compliance with reporting requirements. Its letters are
written on the basis that the FRC (which includes the FRC’s officers,
employees and agents) accepts no liability for reliance on them
by RELX or any third party, including but not limited to investors
and shareholders.
Committee meetings
The Committee met four times during 2021. The Audit Committee
meetings are typically attended by the RELX Chair, RELX Chief
Executive Officer, the RELX Chief Financial Officer, the RELX
Financial Controller, the RELX Chief Legal Officer, the RELX
Head of Audit and Risk Management, and audit partners from
the external auditors.
External audit effectiveness and independence
The Group has a well-established policy on audit effectiveness
and independence of auditors that sets out among other things:
the responsibilities of the Audit Committee in the selection of
auditors to be proposed for appointment or re-appointment
and for agreement on the terms of their engagement, scope and
remuneration; the auditor independence requirements and the
policy on the provision of non-audit services; the rotation of audit
partners and staff; and the conduct of meetings between the
auditors and the Audit Committee. The policy is available on the
website,
www.relx.com.
The Committee has conducted its review of the performance of
the external auditors and the effectiveness of the external audit
process for the year ended 31 December 2021. The review was
based on a survey of key stakeholders across RELX, consideration
of public reports by regulatory authorities on key Ernst & Young
member firms and the quality of the auditor’s reporting to and
interaction with the Audit Committee. Based on this review,
the Audit Committee was satisfied with the performance of the
auditors and the effectiveness of the audit process. The external
auditors have confirmed their independence and compliance
with the policy on auditor independence to the Audit Committee.
Internal audit effectiveness
The RELX Audit Committee’s terms of reference requires an annual
review of internal audit effectiveness. RELX has an established
Audit & Risk Management (A&RM) function whose responsibilities
include internal audit. The A&RM Charter requires an external
assessment at least once every five years to consider and report
on conformance with the Institute of Internal Auditors International
Professional Practices Framework (IPPF) and UK Chartered
Institute of Internal Auditors Internal Audit Code of Practice (CoP).
The last external assessment was carried out in 2017 with the next
planned for 2022.
In addition, the Audit Committee annually receives and considers a
report from the Head of A&RM on: the independence of the internal
audit activity; a review of the A&RM Charter; conformance with the
mandatory elements of the IPPF and CoP; and the results of its
quality assurance and improvement programme.
Non-audit services
The auditors are precluded from engaging in non-audit
services that would compromise their independence or violate
any professional requirements or regulations affecting their
appointment as auditors. The auditors may, however, provide
non-audit services which do not conflict with their independence.
The Committee has, each quarter, reviewed and agreed the
non-audit services provided in 2021 together with the associated
fees which are set out in note 4 to the consolidated financial
statements. The non-audit services provided in 2021 were very
limited and, in line with the latest FRC guidance, linked to audit
work such as corporate responsibility data assurance. The
non-audit fees remain below the 70% threshold as per the
most recent FRC guidance.
Tenure of auditor
Ernst &Young LLP were first appointed auditor of RELX PLC
for the financial year ended 31 December 2016. The auditor is
required to rotate the lead audit partner responsible for the
engagement every five years. The year ended 31 December 2021
was the first year for the lead audit partner, Colin Brown. The
Audit Committee confirms that they were in compliance with the
provisions of The Statutory Audit Services for Large Companies
Market Investigation (Mandatory Use of Competitive Tender
Processes and Audit Committee Responsibilities) Order
2014 during the financial year ended 31 December 2021.
Audit Committee effectiveness
The effectiveness of the Audit Committee was reviewed as part
of the 2021 evaluation of the Board which confirmed that the
Committee continues to function effectively. Details of the
evaluation are set out on page 92.
Suzanne Wood
Chair of the Audit Committee
9 February 2022
RELX Annual report and financial statements 2021 | Governance Directors’ Report
125
The Directors present their report, together with the financial
statements of the Group and RELX PLC (the Company), for the
year ended 31 December 2021. The Company is incorporated as
a public limited company and is registered in England and Wales
with registered number 77536. Its registered office is 1-3 Strand,
London, WC2N 5JR. This report has been prepared in accordance
with the requirements outlined within The Large and Medium-
sized Companies and Group (Accounts and Reports)
Regulation 2008.
Dividends
The Board is recommending a final dividend of 35.5p (2020: 33.4p)
per ordinary share to be paid on 7 June 2022 to shareholders
appearing on the Register of Members at the close of business
on 29 April 2022. Payment of this final dividend remains subject
to the approval of the Company’s shareholders at its 2022 Annual
General Meeting (AGM). Together with the interim dividend of
14.3p (2020: 13.6p) per ordinary share, paid in September 2021,
the total ordinary dividends for the year will be 49.8p (2020: 47.0p).
Corporate structure
The Company’s ordinary shares are traded on the London Stock
Exchange and Euronext Amsterdam. It also has in place an
American Depositary Share programme, under which its securities
are traded on the New York Stock Exchange. For the purposes of
this Directors’ Report, and the Corporate Governance Review from
pages 77 to 96, the Company and its subsidiaries, joint ventures and
associates are together known as ‘RELX’ or ‘the Group’.
Financial statement presentation
This Directors’ Report and the financial statements of the Group
and Company should be read in conjunction with the other reports
set out on pages 2 to 124. A review of the Group’s performance
during the year is set out on pages 5 to 65, the principal and
emerging risks facing the Group are set out on pages 66 to 69,
and the Group statement on corporate responsibility is set out
on pages 38 to 58.
In addition to the reported figures, adjusted figures are presented
as additional performance measures used by management to
assess the performance of the business. These exclude the
Group’s share of amortisation of acquired intangible assets,
acquisition-related items, tax in joint ventures, disposal gains,
finance income and losses, and other non-operating items and
related tax effects. They also exclude movements in deferred tax
assets and liabilities related to goodwill and acquired intangible
assets, but include the benefit of tax amortisation where available
on goodwill and acquired intangible assets.
Company financial statements
The individual company financial statements of the Group
are presented on pages 186 to 188, and were prepared under
Financial Reporting Standard 101 (FRS 101). Distributable
reserves as at 31 December 2021 were £7,042m (2020: £6,916m),
comprising reserves less shares held in treasury. Shareholders’
funds as at 31 December 2021 were £20,182m (2020: £20,019m).
Strategic Report
The Companies Act 2006 requires the Company to present a fair
review of the Group during the financial year. The Strategic Report,
which includes a review of the Group’s business areas, a financial
review, the principal and emerging risks facing the Group, any
important events affecting the Group since 31 December 2021, and
the likely future developments in the Group’s business, is set out
on pages 2 to 69, which are incorporated into this Directors’ Report
by reference. The Directors’ Report, inclusive of the Strategic
Report incorporated therein, forms the management report for
the purposes of the Financial Conduct Authority’s Disclosure and
Transparency Rule 4.1.8R.
Details of dividend cover and our dividend policy are set out on
page 64.
Corporate governance
With the exception of provision 19 (length of tenure of Chair) until
1 March 2021 and provision 38 (rates of contribution for Executive
Pensions), the Company has complied throughout the year with
the provisions of the 2018 UK Corporate Governance Code (the
Code), which is publicly available on the Financial Reporting
Council website (www.frc.org.uk). Details of how the main
principles of the Code have been applied and the Directors’
statement on internal control are set out in the Corporate
Governance Review on pages 77 to 128, which are incorporated
into this Directors’ Report by reference.
Streamlined Energy and Carbon Reporting (SECR)
Absolute performance
2021 Variance
2020
16% 4,516
5,226
Intensity ratio
(per £m revenue)
2021 Variance
0.72
2020
13% 0.64
43,445
-18% 53,131
6.00
-20% 7.47
126,519
-8% 137,412 17.47
-10% 19.33
12,591
2,686
-2% 12,793
-3% 2,763
1.74
0.37
-3% 1.80
-5% 0.39
Global Scope 1
(direct
emissions) tCO2e
Global Scope 2
(indirect
location-based
emissions) tCO2e
Global energy
MWh*
UK energy MWh*
UK Scope 1 and
Scope 2
emissions tCO2e
* Energy figures include vehicle fuels for SECR reporting.
The partial occupancy of our locations, due to Covid-19, during the
year contributed to reductions across many reported metrics.
We report on all global operations for which we have operational
control following the GHG Protocol Corporate Accounting and
Reporting Standard (revised edition) for the reporting year
December 2020 to November 2021.
Directors
The names of the Directors who served on the Board during the
year are set out on pages 72 , 73, and 89, which are incorporated
into this Directors’ Report by reference.
Share capital
The Company’s issued share capital comprises a single class
of ordinary shares, all of which are listed on the London and
Amsterdam stock exchanges. It also has securities, in the form
of American Depositary Shares, traded on the New York Stock
Exchange. All issued shares are fully paid up and carry no
additional obligations or special rights. Each share carries
the right to one vote at general meetings of the Company.
RELX Annual report and financial statements 2021 | Directors’ ReportMarket segmentsGovernanceFinancial statements and other informationFinancial reviewCorporate ResponsibilityOverview 126
In a general meeting, subject to any rights and restrictions
attached to any shares, on a show of hands every member who is
present in person shall have one vote and every proxy present who
has been duly appointed by one or more members entitled to vote
on the resolution has one vote (although a proxy has one vote for
and one vote against the resolution if: (i) the proxy has been duly
appointed by more than one member entitled to vote on the
resolution; and (ii) the proxy has been instructed by one or more
of those members to vote for the resolution and by one or more
other of those members to vote against it). Subject to any rights
or restrictions attached to any shares, on a vote on a resolution
on a poll every member present in person or by proxy shall have
one vote for every share of which he/she is the holder.
Proxy appointments and voting instructions must be received by
the registrars not less than 48 hours before a general meeting.
There are no specific restrictions on the size of a holding nor on
the transfer of shares, which are both governed by the general
provisions of the Articles and prevailing legislation. The Company
is not aware of any agreements between shareholders that may
result in restrictions on the transfer of shares or on voting rights
attached to the shares. At the 2021 AGM, shareholders passed
a resolution authorising the Directors to issue shares for cash
on a non-pre-emptive basis up to a nominal value of £13.5m,
representing less than 5% of the Company’s issued share capital,
and authorising the Directors to issue up to an additional 5% of
the issued share capital for cash on a non-pre-emptive basis in
connection with an acquisition or specified investment. Since
the 2021 AGM, no shares have been issued under this authority.
The shareholder authority also permits the Directors to issue
shares in order to satisfy entitlements under employee share
plans and details of such allotments are described below.
During the year, 2,662,320 ordinary shares in the Company were
issued in order to satisfy entitlements under employee share
plans as follows: 573,818 under a UK Sharesave option scheme at
prices between 949.6p and 1,392.8p per share; 193,814 under the
legacy Dutch Debenture Scheme at prices between 5.453 EUR
and 19.39 EUR , which is now satisfied by way of Company shares;
and 1,894,688 under executive share option schemes at prices
between 515.5p and 2,072.5p per share. The issued share capital
as at 31 December 2021 is shown in note 23 to the consolidated
financial statements.
Authority to purchase shares
At the 2021 AGM, shareholders passed a resolution authorising
the purchase of up to 198m ordinary shares in the Company
(representing less than 10% of the issued ordinary shares) by
market purchase. The purpose of the share buyback is to reduce
the capital of the Company. No purchases were made in the year
under the current shareholder authority, as the Company’s share
buyback programme was suspended from the time of the 2020
AGM through to 31 December 2021. In 2022, we intend to deploy
£500m on share buybacks. By 20 April 2022, £150m of this year’s
total will already have been completed, leaving a further £350m
to be deployed during the year.
Substantial share interests
As at 31 December 2021, the Company had been notified by the
following shareholders that they held an interest of 3% or more
in voting rights of its issued share capital pursuant to Rule 5 of
the Disclosure and Transparency Rules (DTR):
Notifications received as at 31 December 2021
§ BlackRock, Inc
§ Invesco Limited
% of voting rights
7.84 %
4.99 %
The percentage interests stated above are as disclosed at the
date on which the interests were notified to the Company and, as
at 9 February 2022, the Company had not received any further
notifications under DTR 5.
Employee Benefit Trust
The trustee of the Employee Benefit Trust held an interest in
5,448,564 ordinary shares in the Company (representing 0.3% of
the issued ordinary shares) as at 31 December 2021. The trustee
may vote or abstain from voting any shares it holds in any way
it sees fit.
Significant agreements – change of control
There are a number of borrowing agreements including credit
facilities that, in the event of a change of control of RELX PLC
and, in some cases, a consequential credit rating downgrade to
sub-investment grade may, at the option of the lenders, require
repayment and/or cancellation as appropriate. There are no
arrangements between the Company and its Directors or
employees providing for compensation for loss of office or
employment that occurs specifically because of a takeover,
merger or amalgamation with the exception of provisions in
the Company’s share plans which could result in options or
awards vesting or becoming exercisable on a change of control.
Articles
The Company’s Articles of Association (the Articles) may only
be amended by a special resolution of shareholders passed at
a general meeting of the Company.
Appointment and replacement of Directors
The appointment, re-appointment and replacement of Directors
is governed by the Articles, the Companies Act 2006 and related
legislation. Shareholders maintain their right to appoint and
re-appoint Directors by way of an ordinary resolution in
accordance with the Articles. The Directors may appoint
additional or replacement Directors, who may only serve until
the following AGM of the Company, at which time they must retire
and, if appropriate, seek election by the Company’s shareholders.
A Director may be removed from office by the Company as
provided for by applicable law, in certain circumstances set
out in the Articles, and at a general meeting of the Company
by the passing of an ordinary resolution.
The Articles provide for a Board of Directors consisting of not
fewer than two, but not more than 20 Directors, who manage
the business and affairs of the Company.
As at 31 December 2021 there were 50,087,679 ordinary shares
held in treasury, representing 2.5 % of the issued ordinary shares.
The authority to make market purchases will expire at the 2022
AGM, at which a resolution to further extend the authority will be
submitted to shareholders.
Powers of Directors
Subject to the provisions of the Companies Act 2006, the Articles
and any directions given by special resolutions, the business of the
Company shall be managed by the Board which may exercise all
the powers of the Company.
RELX Annual report and financial statements 2021 | Governance 127
Directors’ indemnity
In accordance with its Articles, the Company has granted its
Directors an indemnity, to the extent permitted by law, in respect
of liabilities incurred as a result of their office. This indemnity
was in place for Directors that served at any time during the 2021
financial year, and also for each serving Director as at the date
of approval of this report. The Company also purchased and
maintained throughout the year directors’ and officers’ liability
insurance in respect of itself and its Directors.
Related party transactions
Internal controls are in place to ensure that any related party
transactions involving Directors or their connected persons are
carried out on an arm’s-length basis and are properly recorded
and disclosed where appropriate.
Conflicts of interest
Under the Companies Act 2006, the Directors have a duty to avoid
situations in which they have, or could have, a direct or indirect
interest that conflicts with the interests of the Company. The Board
has established formal procedures for identifying, assessing and
reviewing any situations where a Director has an interest that
conflicts, or may possibly conflict, with the interests of the Company.
The Nominations Committee considers any such conflict or
potential conflict and makes a recommendation to the Board
on whether to authorise it, as permitted under the Company’s
Articles. In reaching its decision, the Board is required to act
in a way it considers would be most likely to promote the
success of the Company and may impose limits or conditions
when giving its authorisation, if it thinks this is appropriate.
Actual or potential conflicts of interest are reviewed annually
by the Nominations Committee.
No contract existed during the year in relation to the Company’s
business in which any Director was materially interested.
Financial instruments
The Group’s financial risk management objectives and policies,
including hedging activities and exposure to risks, are described
in note 17 to the consolidated financial statements on pages
167 to 172.
Political donations
The Group does not make donations to European Union (EU)
political organisations or incur EU political expenditure. In the
US, Group companies donated £112,967 (2020: £107,031) to political
organisations. In line with US law, these donations were not made
at the federal level, but only to candidates and political parties at
state and local levels.
Employee relations
During 2021, the Group employed over 33,000 (2020: 33,000)
employees worldwide, of whom 5,400 (2020: 5,400) were
employed in the UK . The Group is committed to employee
involvement and participation. Where appropriate, major
announcements are communicated to employees through
internal briefings. Information on performance, development,
organisational changes and other matters of interest is
communicated through briefings and electronic bulletins.
The Company is an equal opportunity employer and does
not discriminate on the grounds of race, gender or other
characteristics in its recruitment or employment policies.
The Group conducts a triennial survey to understand the view of
its employees. This survey was conducted in 2021. For further
information on employee surveys conducted throughout the year
and the feedback received please see page 85. Certain employees
throughout the Group are eligible to participate in the Group’s
share incentive plans.
Engagement with suppliers, customers and others
For further information relating to how the Group has engaged
with its suppliers and customers during the course of the year,
and the effect of that engagement on the principal decisions taken
by the Company, please see pages 84 and 88 within the Corporate
governance Review.
Disabled persons
RELX has a positive approach to inclusion and diversity. Details of
the Group’s Inclusion and Diversity Policy are set out on pages 98
to 99, which is incorporated into this Directors’ Report by
reference. The Group is committed to the full and fair treatment of
people with disabilities in relation to job applications, training,
promotion and career development. Where existing employees
become disabled, our policy is to provide continuing employment,
support and training wherever practicable.
Disclosures required under UK Listing Rule 9.8.4
The information required by Listing Rule 9.8.4 is set out on the
pages below:
Information required
(1) Interest capitalised by the Group
(2) Publication of unaudited financial information
(4) Long-term incentive schemes
(5) Waiver of emoluments by a director
(6) Waiver of future emoluments by a director
(7) Non pro-rata allotments for cash (issuer)
Page
n/a
n/a
n/a
n/a
n/a
n/a
(8) Non pro-rata allotments for cash (major subsidiaries) n/a
(9) Parent participation in a placing by a listed subsidiary
n/a
(10) Contracts of significance
(11) Provision of services by a controlling shareholder
(12) Shareholder waiver of dividends
(13) Shareholder waiver of future dividends
(14) Agreements with controlling shareholders
n/a
n/a
161
161
n/a
Financial statements and accounting records
The Directors are responsible for preparing the Directors’ Report
and the financial statements in accordance with applicable law
and regulations.
Company law requires the Directors to prepare financial
statements for each financial year. Under that law the Directors
are required to prepare the consolidated financial statements in
accordance with UK adopted International Accounting Standards
in conformity with the requirements of the Companies Act 2006
and International Financial Reporting Standards (IFRS), following
the accounting policies shown in the notes to the financial
statements on pages 143 to 144. The Directors have elected to
prepare the individual company financial statements in
RELX Annual report and financial statements 2021 | Directors’ ReportMarket segmentsGovernanceFinancial statements and other informationFinancial reviewCorporate ResponsibilityOverview 128
accordance with Financial Reporting Standard 101 Reduced
Disclosure Framework. Under company law the Directors must
not approve the accounts unless they are satisfied that they give
a true and fair view of the state of affairs of the Company and of
the profit or loss of the Company for that period.
In preparing the individual company financial statements, the
Directors are required to: select suitable accounting policies
and then apply them consistently; make judgements and
accounting estimates that are reasonable and prudent; state
whether Financial Reporting Standard 101 Reduced Disclosure
Framework has been followed, subject to any material departures
being disclosed and explained in the financial statements; and
prepare the financial statements on a going concern basis unless
it is inappropriate to presume that the Company will continue
in business.
In preparing the Group financial statements, IAS1 requires that
Directors: properly select and apply accounting policies; present
information, including accounting policies, in a manner that
provides relevant, reliable, comparable and understandable
information; provide additional disclosures when compliance
with the specific requirements of IFRS are insufficient to enable
users to understand the impact of particular transactions,
other events and conditions on the entity’s financial position
and financial performance; and make an assessment of the
Company’s ability to continue as a going concern.
The Directors are responsible for keeping adequate accounting
records that are sufficient to show and explain the Company’s
transactions and disclose with reasonable accuracy at any time
the financial position of the Company and enable them to ensure
that the financial statements comply with the Companies Act 2006.
They are also responsible for safeguarding the assets of the
Company and hence for taking reasonable steps for the
prevention and detection of fraud and other irregularities.
Directors’ responsibility statement
Each of the Directors, whose names and roles can be found on
pages 72 and 73, confirms that, to the best of their knowledge:
§ the consolidated financial statements, prepared in
accordance with UK adopted International Accounting
Standards in conformity with the requirements of the
Companies Act 2006 and International Financial Reporting
Standards (IFRS), following the accounting policies shown in
the notes to the financial statements on pages 143 and 144,
give a true and fair view of the assets, liabilities, financial
position and profit or loss of the Group;
§ the individual company financial statements, prepared in
accordance with Financial Reporting Standard 101 “Reduced
Disclosure Framework” (FRS 101), gives a true and fair view of
the assets, liabilities, financial position and profit or loss of
the Company; and
§ the Directors’ Report includes a fair review of the development
and performance of the business and the position of the Group,
together with a description of the principal and emerging risks
and uncertainties that it faces.
Having taken into account all of the matters considered by the
Board and brought to the attention of the Board during the year,
the Directors are satisfied that the Annual Report and Financial
Statements, taken as a whole, is fair, balanced and understandable
and provides the information necessary for shareholders to
assess the Company’s position and performance, business
model and strategy.
Neither the Company nor the Directors accept any liability to
any person in relation to the Annual Report except to the extent
that such liability could arise under English law. Accordingly, any
liability to a person who has demonstrated reliance on any untrue
or misleading statement or omission shall be determined in
accordance with Section 90A of the Financial Services and
Markets Act 2000.
Disclosure of information to auditors
In accordance with Section 418 of the Companies Act 2006, each
Director in office at the date this Directors’ Report is approved,
confirms that:
§ so far as the Director is aware, there is no relevant audit
information of which the Company’s auditors are unaware; and
§ he/she has taken all the steps that he/she ought to have taken
as a Director to make himself/herself aware of any relevant
audit information and to establish that the Company’s auditors
are aware of that information.
Going concern
The Directors’ statement regarding the appropriateness of
adopting the going concern basis of accounting is set out on page
95, which is incorporated into this Directors’ Report by reference.
Viability statement
The Directors’ statement regarding the long-term viability of
the Group is set out on page 96, which is incorporated into this
Directors’ Report by reference.
Auditors
Resolutions for the re-appointment of Ernst & Young LLP as
auditors of the Company and to authorise the Audit Committee,
on behalf of the Board, to determine their remuneration will be
submitted to shareholders at the 2022 AGM.
Annual General Meeting
This year’s AGM will be held on Thursday 21 April . Owing to the
ongoing prevalence of Covid-19, health and safety protocols may
be put in place to ensure the safety of all attendees. An audiocast
will be available shortly after the AGM, in which the Chair will
respond to any questions submitted by shareholders in advance of
the AGM. Further information on the arrangements for the AGM
are set out separately in the Notice of Meeting.
By order of the Board
Henry Udow
Company Secretary
9 February 2022
Registered Office
1-3 Strand
London
WC2N 5JR
RELX Annual report and financial statements 2021 | Governance 129
In this section
130 Independent auditor’s report
138 Consolidated financial statements
143 Notes to the consolidated financial statements
184 5 year summary
RELX Annual report and financial statements 2021 Financial statements and other informationMarket segmentsGovernanceFinancial statements and other informationFinancial reviewCorporate ResponsibilityOverview 130
RELX Annual report and financial statements 2021 | Financial statements and other information
Independent auditor’s report to
the members of RELX PLC
OPINION
In our opinion:
§ RELX PLC’s group financial statements and parent company financial statements (the “financial statements”) give a true and fair view
of the state of the group’s and of the parent company’s affairs as at 31 December 2021 and of the group’s profit for the year then ended;
§ the group financial statements have been properly prepared in accordance with UK-adopted International Accounting Standards;
§ the parent company financial statements have been properly prepared in accordance with United Kingdom Generally Accepted
Accounting Practice; and
§ the financial statements have been prepared in accordance with the requirements of the Companies Act 2006.
We have audited the financial statements of RELX PLC (the ‘parent company’) and its subsidiaries (the ‘group’) for the year ended
31 December 2021 which comprise:
Group
Parent company
Consolidated income statement for the year ended 31 December 2021.
Statement of financial position as at 31 December 2021
Consolidated statement of comprehensive income for the year then
ended
Consolidated statement of cash flows for the year then ended
Consolidated statement of financial position as at 31 December 2021
Consolidated statement of changes in equity for the year then ended
Related notes 1 to 28 to the financial statements, including a
summary of significant accounting policies
Statement of changes in equity for the year then ended
Related notes 1 to 4 to the financial statements including a summary
of significant accounting policies
The financial reporting framework that has been applied in the preparation of the group financial statements is applicable law and UK
adopted International Accounting Standards and International Financial Reporting Standards (IFRSs). The financial reporting
framework that has been applied in the preparation of the parent company financial statements is applicable law and United Kingdom
Accounting Standards, including FRS 101 “Reduced Disclosure Framework” (United Kingdom Generally Accepted Accounting Practice).
BASIS FOR OPINION
We conducted our audit in accordance with International Standards on Auditing (UK) (ISAs (UK)) and applicable law. Our responsibilities
under those standards are further described in the Auditor’s responsibilities for the audit of the financial statements section of our
report. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.
INDEPENDENCE
We are independent of the group and parent in accordance with the ethical requirements that are relevant to our audit of the financial
statements in the UK, including the FRC’s Ethical Standard as applied to listed public interest entities, and we have fulfilled our other
ethical responsibilities in accordance with these requirements.
The non-audit services prohibited by the FRC’s Ethical Standard were not provided to the group or the parent company and we remain
independent of the group and the parent company in conducting the audit
CONCLUSIONS RELATING TO GOING CONCERN
In auditing the financial statements, we have concluded that the directors’ use of the going concern basis of accounting in the preparation
of the financial statements is appropriate. Our evaluation of the directors’ assessment of the group and parent company’s ability to
continue to adopt the going concern basis of accounting included:
§ Confirming our understanding of management’s Going Concern assessment process, in conjunction with our walkthrough of the
Group’s financial close process, and also engaging with management to confirm all key factors were considered in their assessment;
§ Obtaining management’s going concern assessment, including the cash forecast and covenant calculation for the going concern
period which covers 18 months from the balance sheet date to 30 June 2023. The Group has modelled a number of adverse scenarios
in their cash forecasts and covenant calculations in order to incorporate unexpected changes to the forecasted liquidity of the Group.
We have tested the factors and assumptions included in each modelled scenario for the cash forecast and tested compliance with the
covenants. We have also tested the impact of Covid-19 included in each forecasted scenario and evaluated the appropriateness of the
methods used to calculate the cash forecasts. Additionally, we tested the clerical accuracy of covenant compliance calculations and
determined through inspection and testing of the methodology and calculations that the methods utilised were appropriately
sophisticated to be able to make an assessment for the entity.
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131
§ Considering the mitigating factors included in the cash forecasts and covenant calculations that are within control of the Group.
This includes review of the Group’s non-operating cash outflows and evaluating the Group’s ability to control these outflows as
mitigating actions if required.
§ Verifying the credit facilities available to the Group.
§ Performing reverse stress testing in order to identify what factors would lead to the Group running out of all available finance or
breaching the financial covenant during the going concern period.
§ Reviewing the Group’s going concern disclosures included in the annual report in order to assess that the disclosures are appropriate
and in conformity with the reporting standards.
We have observed that the Exhibitions segment, which accounted for 7% of Group revenue in 2021 (5% in 2020), is still experiencing
disruption from the impact of the pandemic. Despite this uncertainty in the Exhibitions business, the other three RELX segments (Risk,
Science, Technical and Medical (STM), and Legal), which make up the majority of the Group’s revenue and profits, have not
been significantly impacted by Covid-19 from a revenue or profitability perspective. Further, the Group has access to committed
bank facilities aggregating $3.0bn which is maturing in 2023 and 2024.
Based on the work we have performed, we have not identified any material uncertainties relating to events or conditions that,
individually or collectively, may cast significant doubt on the group and parent company’s ability to continue as a going concern
for a period of 18 months from 31 December 2021
In relation to the group and parent company’s reporting on how they have applied the UK Corporate Governance Code, we have nothing
material to add or draw attention to in relation to the directors’ statement in the financial statements about whether the directors
considered it appropriate to adopt the going concern basis of accounting.
Our responsibilities and the responsibilities of the directors with respect to going concern are described in the relevant sections of this
report. However, because not all future events or conditions can be predicted, this statement is not a guarantee as to the group’s ability
to continue as a going concern.
OVERVIEW OF OUR AUDIT APPROACH
Audit scope
Key audit matters
Materiality
§ We performed an audit of the complete financial information of six components and audit
procedures on specific balances for a further six components. We also instructed one
location to perform specific audit procedures over manual journal entries to revenue.
§ The components where we performed full or specific audit procedures accounted for 80%
of Profit before tax on an absolute basis, 83% of Revenue and 78% of Total assets.
§ Uncertain tax positions - risk that the tax provisions may be incorrectly quantified, impacting
the provision and the effective tax rate, and that the tax provision is improperly disclosed.
§ Revenue recognition - risk that there is an opportunity to commit fraud impacting revenue
through manual adjustments or override of controls by management.
§ Overall Group materiality of £90m which represents 5% of profit before tax.
AN OVERVIEW OF THE SCOPE OF THE PARENT COMPANY AND GROUP AUDITS
Tailoring the scope
Our assessment of audit risk, our evaluation of materiality and our allocation of performance materiality determine our audit scope for
each company within the Group. Taken together, this enables us to form an opinion on the consolidated financial statements. We take into
account size, risk profile, the organisation of the group and effectiveness of group-wide controls, changes in the business environment
and other factors such as recent internal audit results when assessing the level of work to be performed at each entity.
The group has centralised processes for key judgements and determination of accounting policies. Certain key audit matters, namely
revenue recognition are more decentralised processes delineated by business area. We have tailored our response accordingly and
procedures were performed or directed by the group audit team.
In assessing the risk of material misstatement to the Group financial statements, and to ensure we had adequate quantitative coverage
of significant accounts in the financial statements we selected twelve components covering entities within United Kingdom, Netherlands,
United States, France and Japan, which represent the principal business units within the Group.
Of the twelve components selected, we performed an audit of the complete financial information of six components (“full scope
components”) which were selected based on their size or risk characteristics. For the remaining six components (“specific scope
components”), we performed audit procedures on specific accounts within that component that we considered had the potential
for the greatest impact on the significant accounts in the financial statements either because of the size of these accounts or their
risk profile. We also instructed one additional location to perform specific audit procedures over manual journal entries to revenue.
Market segmentsGovernanceFinancial statements and other informationFinancial reviewCorporate ResponsibilityOverview 132
RELX Annual report and financial statements 2021 | Financial statements and other information
The reporting components where we performed full and specific audit procedures accounted for 80% (2020: 81%) of the Group’s profit
before tax on an absolute basis, 83% (2020: 85%) of the Group’s revenue and 78% (2020: 74%) of the Group’s total assets. For the current
year, the full scope components contributed 60% (2020: 59%) of the Group’s profit before tax on an absolute basis, 77% (2020: 80%) of
the Group’s revenue and 69% (2020: 66%) of the Group’s total assets. The specific scope component contributed 20% (2020: 22%) of the
Group’s Profit before tax on an absolute basis, 6% (2020: 5%) of the Group’s revenue and 9% (2020: 8%) of the Group’s total assets. The
audit scope of these components may not have included testing of all significant accounts of the component but will have contributed to
the coverage of significant accounts tested for the Group. We also instructed one location to perform specified procedures over manual
journal entries related to revenue, as described in the Risk section above.
Of the remaining components that together represent 20% (2020:22%) of the Group’s profit before tax on an absolute basis, none
are individually greater than 1% (2020: 2%) of the Group’s profit before tax. For these components, we performed other procedures,
including analytical review, review of internal audit reports, testing of entity level and group wide controls, testing of consolidation
journals, intercompany eliminations and foreign currency translation recalculations at the group level to respond to any potential
risks of material misstatement to the Group financial statements.
The charts below illustrate the coverage obtained from the work performed by our audit teams.
Profit before tax
(on absolute basis)
20%
Revenue
17%
6%
20%
60%
Full scope
Specific scope
Other procedures
Total assets
22%
9%
77%
69%
(1) Coverage of profit before tax measure on an absolute basis for each component (components with a loss would be added to both the numerator and denominator).
Changes from the prior year
The full and specific scope components have not changed from the prior year as these components remain the most significant to the
Group, by size and risk, and the coverage of the Group was consistent with the prior year audit. As a continuing impact from the COVID-19
outbreak, our audit has been completed using as hybrid approach with virtual and in-person meetings where appropriate.
Involvement with component teams
In establishing our overall approach to the Group audit, we determined the type of work that needed to be undertaken at each of the
components by us, as the primary audit engagement team, or by component auditors from other EY global network firms operating
under our instruction. Of the six full scope components, audit procedures were performed on three of these directly by the primary audit
team. For the six specific scope components, where the work was performed by component auditors, we determined the appropriate level
of involvement to enable us to determine that sufficient audit evidence had been obtained as a basis for our opinion on the Group as a whole.
The Group audit team continued to follow a programme of planned visits that has been designed to ensure that the Senior Statutory
Auditor visits all full scope and specific scope locations. During the current year’s audit cycle, visits were undertaken by the primary
audit team to the component teams in United Kingdom, United States and Netherlands whereas visits in France and Japan remained
virtual amid the Covid-19 pandemic. These visits involved meetings with local management, and discussions with the component team
on the audit approach and any issues arising from their work. The primary team interacted regularly with the component teams where
appropriate during various stages of the audit, reviewed relevant working papers and were responsible for the scope and direction of
the audit process. This, together with the additional procedures performed at Group level, gave us appropriate evidence for our opinion
on the Group financial statements.
CLIMATE CHANGE
There has been increasing interest from stakeholders as to how climate change will impact companies. The Group has determined
that the most significant future impacts from climate change on its operations will be from global warming and extreme weather
events. These are explained on pages 55-57 in the Task Force for Climate related Financial Disclosures and on pages 66 to 69 in the
principal risks and uncertainties, which form part of the “Other information,” rather than the audited financial statements. Our
procedures on these disclosures therefore consisted solely of considering whether they are materially inconsistent with the
financial statements or our knowledge obtained in the course of the audit or otherwise appear to be materially misstated.
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133
Our audit effort in considering climate change was focused on the adequacy of the Group’s disclosures in the financial statements and
conclusion that no issues were identified that would impact the carrying values of assets with indefinite and long lives or have any other
impact on the financial statements for RELX PLC. We also challenged the Directors’ considerations of climate change in their
assessment of going concern and viability and associated disclosures.
KEY AUDIT MATTERS
Key audit matters are those matters that, in our professional judgement, were of most significance in our audit of the financial statements
of the current period and include the most significant assessed risks of material misstatement (whether or not due to fraud) that we
identified. These matters included those which had the greatest effect on: the overall audit strategy, the allocation of resources in
the audit; and directing the efforts of the engagement team. These matters were addressed in the context of our audit of the financial
statements as a whole, and in our opinion thereon, and we do not provide a separate opinion on these matters.
RISK
OUR RESPONSE TO THE RISK
Uncertain tax positions
As described in note 9 to the consolidated financial
statements, note 1 in the accounting policies and in
the audit committee report (page 122), the Group is
subject to tax in numerous jurisdictions. Provisions
related to tax totalled £228m as at 31 December
2021 (2020: £276m). The Group’s operational
structure gives rise to potential tax exposures
that require management to exercise judgement
in making determinations as to the amount of tax
that is payable. The Group reports cross-border
transactions undertaken between subsidiaries on
an arm’s-length basis in tax returns in accordance
with Organisation for Economic Co-operation and
Development (OECD) guidelines. Transfer pricing
relies on the exercise of judgement and it is
reasonably possible for there to be a significant
range of potential outcomes.
As a result, the Group has recognised a number
of provisions against uncertain tax positions, the
valuation of which requires significant estimation
uncertainty, as described in note 9.
We focused on this area due to the complexity
due to the subjectivity in the quantification of the
provision and the judgement around the trigger for
recognition or release impacting the provision and
the effective tax rate.
Our procedures included obtaining an understanding
of the tax provisioning processes and evaluating the
design of, as well as testing, internal controls over
the tax provisioning process. We tested controls over
management’s review of the uncertain tax position
provisions recorded, including the controls over
the development of significant assumptions
and judgements.
Our procedures on the uncertain tax positions were
performed centrally by the group team supported by
overseas teams including professionals with specialised
skills. Procedures included, among others (i) meeting
with members of management responsible for tax to
understand the Group cross-border transactions,
status of significant provisions, and any changes to
management’s judgements in the year; (ii) reading
correspondence with tax authorities and external
advisors and obtaining an understanding of all matters
considered by management to inform our assessment
of recorded estimates and evaluate the completeness
of the provisions recorded; (iii) independently assessing
management’s significant assumptions and judgements
to record or release provisions following tax audits,
settlements and the expiry of timeframes with reference
to other similar tax positions the Group has historically
held and our knowledge of developments in the
jurisdictions in which RELX maintain tax provisions;
(iv) testing the underlying schedules for arithmetic
accuracy, as well as with reference to applicable tax
laws; and (v) evaluating the adequacy of tax disclosures.
KEY OBSERVATIONS
COMMUNICATED
TO THE AUDIT COMMITTEE
We reported to the Audit
Committee that we challenged
the robustness of the key
management judgements.
We confirmed that we were
satisfied that management’s
judgements in relation to
the extent of provisions for
uncertain tax positions are
appropriate. We noted further
that there continues to be a
high degree of uncertainty
about the eventual outcome
of many of these provisions.
The notes to the financial
statements appropriately
include disclosure of the
estimation uncertainty related
to uncertain tax positions.
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KEY OBSERVATIONS
COMMUNICATED
TO THE AUDIT COMMITTEE
Revenue has been recognised
appropriately in the year
ended 31 December 2021
in accordance with IFRS 15:
Revenue from Contracts
with Customers.
RISK
OUR RESPONSE TO THE RISK
Revenue recognition
Revenue recognition as described in note 2
to the consolidated financial statements, the
group recognises revenue (£7.2bn recorded
in 2021, compared to £7.1bn recorded in 2020)
from a variety of sources among the different
business areas, including annual subscriptions,
transactional usage and exhibition fees. The
nature of the risk associated with the accurate
recording of revenue varies.
We recognise that revenue is a key metric upon
which the group is judged, that the group has
annual internal targets, and that the group has
incentive schemes that are partially impacted by
revenue growth.
We have determined that there is a risk in each of
the business areas related to the opportunity to
commit fraud in the respective revenue streams
through manual adjustments or override of
controls by management.
We performed full and specific scope audit procedures
over revenue in 11 locations, which covered 83% of
revenue. We performed procedures to address the
specific risk in each business area. Procedures
included, among others, (i) assessing the processes
and testing controls over each significant revenue
stream; (ii) evaluating the appropriateness of
journal entries impacting revenue, as well as other
adjustments made in the preparation of the financial
statements; (iii) evaluating management’s controls
over such adjustments; (iv) inspecting a sample of
contracts to check that revenue recognition was in
accordance with the contract terms and the group’s
revenue recognition policies; (v) testing a sample of
transactions around period end to test that revenue
was recorded in the correct period; (vi) for revenue
streams that have judgemental elements, evaluating
management’s assumption and critically challenging
these assumptions against contractual terms;(vii) for
certain revenue streams we obtained audit evidence
through the execution of data analytics procedures,
including a correlation of revenue to cash.
The procedures we performed over the remaining 17%
of revenue included: (i) testing of entity level and group
wide controls; (ii) analytical review of year over year
movements in revenue; (iii) review for evidence of
material contracts that would require further testing.
In the prior year, our audit opinion included a key audit matter in relation to valuation of identifiable intangible assets for acquisitions.
In the current year, this was no longer identified as a key audit matter due to the materiality of acquisitions during the year, and therefore
it is no longer deemed to have the greatest effect on overall audit strategy, the allocation of resources or directing the efforts of the
engagement team.
In the prior year, our audit opinion included a key audit matter in relation to the capitalisation of internally developed intangible assets.
With the successful commercial deployment of the NewLexis platform, there are no other individually material projects that require
significant judgement in relation to capitalisation and therefore this audit matter was not deemed to have the greatest effect on overall
audit strategy, the allocation of the resources or directing the efforts of the engagement.
OUR APPLICATION OF MATERIALITY
We apply the concept of materiality in planning and performing the audit, in evaluating the effect of identified misstatements on the audit
and in forming our audit opinion.
Materiality
The magnitude of an omission or misstatement that, individually or in the aggregate, could reasonably be expected to influence the economic
decisions of the users of the financial statements. Materiality provides a basis for determining the nature and extent of our audit procedures.
We determined materiality for the Group to be £90 million (2020: £70 million), which is 5% (2020: 5%) of profit before tax. We believe that
profit before tax provides us with the most relevant performance measure to the stakeholders of the entity and therefore have
determined materiality based on this number .
We determined materiality for the Parent Company to be £90 million (2020: £70 million), which is 0.4% (2020: 0.4%) of equity.
Performance materiality
The application of materiality at the individual account or balance level. It is set at an amount to reduce to an appropriately low level the probability
that the aggregate of uncorrected and undetected misstatements exceeds materiality.
On the basis of our risk assessments, together with our assessment of the Group’s overall control environment, our judgement was that
performance materiality was 75% (2020: 75%) of our planning materiality, namely £68m (2020: £52.5m). We have set performance
materiality at this percentage due to our assessment of the control environment and the historic lack of significant audit findings.
Audit work at component locations for the purpose of obtaining audit coverage over significant financial statement accounts is undertaken
based on a percentage of total performance materiality. The performance materiality set for each component is based on the relative
scale and risk of the component to the Group as a whole and our assessment of the risk of misstatement at that component. In the
current year, the range of performance materiality allocated to components was £6.5m to £52m (2020: £6.5m to £47m).
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135
Reporting threshold
An amount below which identified misstatements are considered as being clearly trivial.
We agreed with the Audit Committee that we would report to them all uncorrected audit differences in excess of £4.5m (2020: £3.5m),
which is set at 5% of planning materiality, as well as differences below that threshold that, in our view, warranted reporting on
qualitative grounds.
We evaluate any uncorrected misstatements against both the quantitative measures of materiality discussed above and in light of other
relevant qualitative considerations in forming our opinion.
OTHER INFORMATION
The other information comprises the information included in the annual report set out on pages 1-128, other than the financial statements
and our auditor’s report thereon. The directors are responsible for the other information contained within the annual report.
Our opinion on the financial statements does not cover the other information and, except to the extent otherwise explicitly stated in this
report, we do not express any form of assurance conclusion thereon.
Our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent
with the financial statements or our knowledge obtained in the course of the audit or otherwise appears to be materially misstated. If
we identify such material inconsistencies or apparent material misstatements, we are required to determine whether this gives rise to
a material misstatement in the financial statements themselves. If, based on the work we have performed, we conclude that there is a
material misstatement of the other information, we are required to report that fact.
We have nothing to report in this regard.
Opinions on other matters prescribed by the Companies Act 2006
In our opinion, the part of the directors’ remuneration report to be audited has been properly prepared in accordance with the
Companies Act 2006.
In our opinion, based on the work undertaken in the course of the audit:
§ the information given in the strategic report and the directors’ report for the financial year for which the financial statements
are prepared is consistent with the financial statements; and
§ the strategic report and the directors’ report have been prepared in accordance with applicable legal requirements
Matters on which we are required to report by exception
In the light of the knowledge and understanding of the group and the parent company and its environment obtained in the course of the
audit, we have not identified material misstatements in the strategic report or the directors’ report.
We have nothing to report in respect of the following matters in relation to which the Companies Act 2006 requires us to report to you if,
in our opinion:
§ adequate accounting records have not been kept by the parent company, or returns adequate for our audit have not been received
from branches not visited by us; or
§ the parent company financial statements and the part of the Directors’ Remuneration Report to be audited are not in agreement with
the accounting records and returns; or
§ certain disclosures of directors’ remuneration specified by law are not made; or
§ we have not received all the information and explanations we require for our audit
Corporate Governance Statement
We have reviewed the directors’ statement in relation to going concern, longer-term viability and that part of the Corporate Governance
Statement relating to the group and company’s compliance with the provisions of the UK Corporate Governance Code specified for our
review by the Listing Rules.
Based on the work undertaken as part of our audit, we have concluded that each of the following elements of the Corporate Governance
Statement is materially consistent with the financial statements or our knowledge obtained during the audit:
§ Directors’ statement with regards to the appropriateness of adopting the going concern basis of accounting and any material
uncertainties identified set out on page 95;
§ Directors’ explanation as to its assessment of the company’s prospects, the period this assessment covers and why the period is
appropriate set out on page 96;
§ Director’s statement on whether it has a reasonable expectation that the group will be able to continue in operation and meets its
liabilities set out on page 95;
Market segmentsGovernanceFinancial statements and other informationFinancial reviewCorporate ResponsibilityOverview 136
§ Directors’ statement on fair, balanced and understandable set out on page 128;
§ Board’s confirmation that it has carried out a robust assessment of the emerging and principal risks set out on page 66;
§ The section of the annual report that describes the review of effectiveness of risk management and internal control systems set out
on page 93; and;
§ The section describing the work of the audit committee set out on page 122.
Responsibilities of directors
As explained more fully in the directors’ responsibilities statement set out on page 128, the directors are responsible for the preparation
of the financial statements and for being satisfied that they give a true and fair view, and for such internal control as the directors
determine is necessary to enable the preparation of financial statements that are free from material misstatement, whether due to
fraud or error.
In preparing the financial statements, the directors are responsible for assessing the group and parent company’s ability to continue as
a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless the
directors either intend to liquidate the group or the parent company or to cease operations, or have no realistic alternative but to do so.
Auditor’s responsibilities for the audit of the financial statements
Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement,
whether due to fraud or error, and to issue an auditor’s report that includes our opinion. Reasonable assurance is a high level of assurance,
but is not a guarantee that an audit conducted in accordance with ISAs (UK) will always detect a material misstatement when it exists.
Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be
expected to influence the economic decisions of users taken on the basis of these financial statements.
Explanation as to what extent the audit was considered capable of detecting irregularities, including fraud
Irregularities, including fraud, are instances of non-compliance with laws and regulations. We design procedures in line with our
responsibilities, outlined above, to detect irregularities, including fraud. The risk of not detecting a material misstatement due to fraud is
higher than the risk of not detecting one resulting from error, as fraud may involve deliberate concealment by, for example, forgery or
intentional misrepresentations, or through collusion. The extent to which our procedures are capable of detecting irregularities,
including fraud is detailed below.
However, the primary responsibility for the prevention and detection of fraud rests with both those charged with governance of the
company and management.
§ We obtained an understanding of the legal and regulatory frameworks that are applicable to the group and determined that the most
significant are those that relate to the reporting framework (UK adopted International Accounting Standards, FRS 101, the
Companies Act 2006 and UK Corporate Governance Code) and relevant tax compliance regulations in the jurisdictions in which the
Group operates.
§ We understood how RELX PLC is complying with those frameworks by making inquiries of management, internal audit, those
responsible for legal and compliance procedures and the company secretary. We corroborated our enquiries through our review of
Board minutes and papers provided to the Audit Committee, observations in Audit Committee meetings, as well as consideration of
the results of our audit procedures across the Group.
§ We assessed the susceptibility of the group’s financial statements to material misstatement, including how fraud might occur by
meeting the finance and operational management from various parts of the business to understand where it considered there was
susceptibility to fraud. We also considered performance targets and their propensity to influence on efforts made by management
to manage earnings. We considered the programmes and controls that the Group has established to address risks identified, other
that otherwise prevent, deter and detect fraud; and how senior management monitors those programmes and controls. Where the
risk was considered to be higher, we performed audit procedures to address each identified fraud risk. These procedures included
testing manual journals and were designed to provide reasonable assurance that the financial statements were free from fraud
or error.
§ Based on this understanding we designed our audit procedures to identify non-compliance with such laws and regulations. Our
procedures involved journal entry testing, with a focus on manual consolidation journals and journals indicating large or unusual
transactions based on our understanding of the business; enquiries of legal counsel, Group management, internal audit, business
area management at all full and specific scope management; and focused testing. In addition, we completed procedures to conclude
on the compliance of the disclosures in the annual report and accounts with all applicable requirements.
§ Any instances of non-compliance with laws and regulations were communicated by/to components and considered in our audit
approach, if applicable.
A further description of our responsibilities for the audit of the financial statements is located on the Financial Reporting Council’s
website at https://www.frc.org.uk/auditorsresponsibilities. This description forms part of our auditor’s report.
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137
OTHER MATTERS WE ARE REQUIRED TO ADDRESS
§ Following the recommendation from the audit committee we were appointed by the company on 21 April 2016 to audit the financial
statements for the year ending 31 December and subsequent financial periods.
§ The period of total uninterrupted engagement including previous renewals and reappointments is six years, covering the years
ending 2016 to 2021.
§ Non-audit services prohibited by the FRC’s Ethical Standard were not provided to the group or the parent company and we remain
independent of the group and the parent company in conducting the audit.
§ The audit opinion is consistent with the additional report to the audit committee.
USE OF OUR REPORT
This report is made solely to the company’s members, as a body, in accordance with Chapter 3 of Part 16 of the Companies Act 2006.
Our audit work has been undertaken so that we might state to the company’s members those matters we are required to state to them in
an auditor’s report and for no other purpose. To the fullest extent permitted by law, we do not accept or assume responsibility to anyone
other than the company and the company’s members as a body, for our audit work, for this report, or for the opinions we have formed.
Colin Brown (Senior statutory auditor)
for and on behalf of Ernst & Young LLP, Statutory Auditor
London
9 February 2022
Notes:
(1) The maintenance and integrity of the RELX PLC web site is the responsibility of the directors; the work carried out by the auditors does not involve consideration
of these matters and, accordingly, the auditors accept no responsibility for any changes that may have occurred to the financial statements since they were
initially presented on the web site.
(2) Legislation in the United Kingdom governing the preparation and dissemination of financial statements may differ from legislation in other jurisdictions.
Market segmentsGovernanceFinancial statements and other informationFinancial reviewCorporate ResponsibilityOverview 138
Consolidated income statement
FOR THE YEAR ENDED 31 DECEMBER
Revenue
Cost of sales
Gross profit
Selling and distribution costs
Administration and other expenses
Share of results of joint ventures
Operating profit
Finance income
Finance costs
Net finance costs
Disposals and other non-operating items
Profit before tax
Current tax
Deferred tax
Tax expense
Net profit for the year
Attributable to:
RELX PLC shareholders
Non-controlling interests
Net profit for the year
Earnings per share
FOR THE YEAR ENDED 31 DECEMBER
Basic earnings per share
RELX PLC
Diluted earnings per share
RELX PLC
Note
2
2, 3
7
7
8
9
2021
£m
7,244
(2,562)
4,682
(1,197)
(1,630)
29
1,884
8
(150)
(142)
55
1,797
(422)
96
(326)
1,471
2020
£m
7,110
(2,487)
4,623
(1,212)
(1,901)
15
1,525
3
(175)
(172)
130
1,483
(264)
(11)
(275)
1,208
2019
£m
7,874
(2,755)
5,119
(1,292)
(1,767)
41
2,101
9
(314)
(305)
51
1,847
(382)
44
(338)
1,509
1,471
–
1,471
1,224
(16)
1,208
1,505
4
1,509
2021
2020
2019
10
76.3p
63.5p
77.4p
10
75.8p
63.2p
76.9p
RELX Annual report and financial statements 2021 | Financial statements and other information Consolidated statement of comprehensive income
139
FOR THE YEAR ENDED 31 DECEMBER
Net profit for the year
Items that will not be reclassified to profit or loss:
Actuarial gains/(losses) on defined benefit pension schemes
Tax on items that will not be reclassified to profit or loss
Total items that will not be reclassified to profit or loss
Items that may be reclassified subsequently to profit or loss:
Exchange differences on translation of foreign operations
Fair value movements on cash flow hedges
Transfer (from)/to net profit from cash flow hedge reserve
Tax on items that may be reclassified to profit or loss
Total items that may be reclassified to profit or loss
Other comprehensive income/(loss) for the year
Total comprehensive income for the year
Attributable to:
RELX PLC shareholders
Non-controlling interests
Total comprehensive income for the year
Note
2021
£m
1,471
2020
£m
1,208
2019
£m
1,509
6
9
17
17
9
321
(48)
273
223
10
(9)
(1)
223
496
1,967
1,967
–
1,967
(155)
39
(116)
(265)
(6)
22
(4)
(253)
(369)
839
855
(16)
839
(137)
23
(114)
(82)
16
35
(8)
(39)
(153)
1,356
1,352
4
1,356
RELX Annual report and financial statements 2021Market segmentsGovernanceFinancial statements and other informationFinancial reviewCorporate ResponsibilityOverview 140
Consolidated statement of cash flows
FOR THE YEAR ENDED 31 DECEMBER
Cash flows from operating activities
Cash generated from operations
Interest paid (including lease interest)
Interest received
Tax paid (net)
Net cash from operating activities
Cash flows from investing activities
Acquisitions
Purchases of property, plant and equipment
Expenditure on internally developed intangible assets
Purchase of investments
Proceeds from disposals of property, plant and equipment
Gross proceeds from business disposals and sale of investments
Payments on business disposals
Dividends received from joint ventures
Net cash used in investing activities
Cash flows from financing activities
Dividends paid to shareholders
Distributions to non-controlling interests
(Decrease)/increase in short-term bank loans, overdrafts and commercial paper
Issuance of term debt
Repayment of term debt
Repayment of leases
Receipts in respect of subleases
Disposal of non-controlling interest
Repurchase of ordinary shares
Purchase of shares by Employee Benefit Trust
Proceeds on issue of ordinary shares
Net cash used in financing activities
Note
11
11
13
11
11
11
11
11
23
23
2021
£m
2020
£m
2019
£m
2,476
(119)
1
(342)
2,016
(254)
(28)
(309)
(8)
5
220
(30)
20
(384)
(920)
(10)
(200)
–
(431)
(93)
17
–
–
(1)
32
(1,606)
2,264
(179)
7
(496)
1,596
(869)
(43)
(319)
(2)
–
54
(25)
31
(1,173)
(880)
(6)
(436)
2,342
(1,233)
(105)
15
–
(150)
(37)
16
(474)
2,724
(175)
4
(464)
2,089
(423)
(47)
(333)
(8)
2
82
(40)
34
(733)
(842)
(9)
98
729
(617)
(102)
16
6
(600)
(37)
29
(1,329)
Increase/(decrease) in cash and cash equivalents
11
26
(51)
27
Movement in cash and cash equivalents
At start of year
Increase/(decrease) in cash and cash equivalents
Exchange translation differences
At end of year
88
26
(1)
113
138
(51)
1
88
114
27
(3)
138
RELX Annual report and financial statements 2021 | Financial statements and other information
Consolidated statement of financial position
AS AT 31 DECEMBER
Non-current assets
Goodwill
Intangible assets
Investments in joint ventures
Other investments
Property, plant and equipment
Right-of-use assets
Other receivables
Deferred tax assets
Net pension assets
Derivative financial instruments
Current assets
Inventories and pre-publication costs
Trade and other receivables
Derivative financial instruments
Cash and cash equivalents
Total assets
Current liabilities
Trade and other payables
Derivative financial instruments
Debt
Taxation
Provisions
Non-current liabilities
Derivative financial instruments
Debt
Deferred tax liabilities
Net pension obligations
Other payables
Provisions
Total liabilities
Net assets
Capital and reserves
Share capital
Share premium
Shares held in treasury
Translation reserve
Other reserves
Shareholders’ equity
Non-controlling interests
Total equity
141
Note
2021
£m
2020
£m
14
14
15
15
16
22
9
6
17
18
19
17
11
20
17
21
9
17
21
9
6
23
23
24
7,366
3,304
105
107
131
161
19
210
46
52
11,501
253
1,960
31
113
2,357
13,858
3,275
2
232
192
47
3,748
12
5,935
591
315
10
23
6,886
10,634
3,224
7,224
3,425
103
259
162
216
27
270
47
138
11,871
240
1,927
19
88
2,274
14,145
3,260
9
847
149
109
4,374
3
6,276
665
671
49
6
7,670
12,044
2,101
286
1,491
(876)
250
2,081
3,232
(8)
3,224
286
1,459
(887)
27
1,214
2,099
2
2,101
The consolidated financial statements were approved by the Board of Directors and authorised for issue on 9 February 2022.
They were signed on its behalf by:
P Walker
Chair
N L Luff
Chief Financial Officer
RELX Annual report and financial statements 2021Market segmentsGovernanceFinancial statements and other informationFinancial reviewCorporate ResponsibilityOverview
142
Consolidated statement of changes in equity
Share
capital
£m
290
Share
premium
£m
1,415
Shares held
in treasury
£m
(734)
Translation
reserve
£m
374
Other
reserves
£m
984
Shareholders’
equity
£m
2,329
Non-
controlling
interests
£m
30
Note
13
23
23
23
23
13
23
13
23
Balance at 1 January 2019
Total comprehensive income for
the year
Dividends paid
Issue of ordinary shares,
net of expenses
Repurchase of ordinary shares
Bonus issue of ordinary shares
Cancellation of bonus shares
Cancellation of shares
Increase in share based
remuneration reserve
(net of tax)
Settlement of share awards
Acquisitions
Put option
Disposal of non-controlling interest
Exchange differences on translation
of capital and reserves
Balance at 1 January 2020
Total comprehensive income for
the year
Dividends paid
Issue of ordinary shares,
net of expenses
Repurchase of ordinary shares
Increase in share based
remuneration reserve
(net of tax)
Settlement of share awards
Acquisitions
Exchange differences on translation
of capital and reserves
Balance at 1 January 2021
Total comprehensive income for
the year
Dividends paid
Issue of ordinary shares,
net of expenses
Repurchase of ordinary shares
Increase in share based
remuneration reserve
(net of tax)
Settlement of share awards
Balance at 31 December 2021
–
–
1
–
4,000
(4,000)
(5)
–
–
–
–
–
–
–
28
–
–
–
–
–
–
–
–
–
–
286
–
1,443
–
–
–
–
–
–
–
–
–
16
–
–
–
–
–
–
–
(637)
–
–
504
–
33
–
–
–
–
(834)
–
–
–
(87)
–
34
–
–
286
–
1,459
–
(887)
–
–
–
–
–
–
32
–
–
–
–
(1)
–
–
286
–
–
1,491
–
12
(876)
(82)
–
1,434
(842)
1,352
(842)
–
–
–
–
–
–
–
–
–
–
–
292
(265)
–
–
–
–
–
–
–
27
223
–
–
–
–
–
250
–
–
(4,000)
4,000
(499)
33
(33)
–
(103)
5
–
979
1,120
(880)
–
–
27
(34)
2
–
1,214
1,744
(920)
–
–
55
(12)
2,081
29
(637)
–
–
–
33
–
–
(103)
5
–
2,166
855
(880)
16
(87)
27
–
2
–
2,099
1,967
(920)
32
(1)
55
–
3,232
Total
equity
£m
2,359
1,356
(851)
29
(637)
–
–
–
33
–
(1)
(103)
6
(1)
2,190
839
(886)
16
(87)
27
–
–
2
2,101
4
(9)
–
–
–
–
–
–
–
(1)
–
1
(1)
24
(16)
(6)
–
–
–
–
(2)
2
2
–
(10)
1,967
(930)
–
–
–
–
(8)
32
(1)
55
–
3,224
RELX Annual report and financial statements 2021 | Financial statements and other information RELX Annual report and financial statements 2021
143
Notes to the consolidated financial statements
for the year ended 31 December 2021
1 Basis of preparation and accounting policies
Basis of preparation
The shares of RELX PLC are traded on the London, Amsterdam and New York stock exchanges. RELX PLC and its subsidiaries,
joint ventures and associates are together known as ‘RELX’. In preparing the consolidated financial statements, subsidiaries are
accounted for under the acquisition method and investments in associates and joint ventures are accounted for under the equity
method. All intra-group transactions and balances are eliminated.
On acquisition of a subsidiary, or interest in an associate or joint venture, fair values, reflecting conditions at the date of acquisition,
are attributed to the net assets, including identifiable intangible assets acquired. Adjustments are made to bring accounting policies
into line with those of the Group. The results of subsidiaries sold or acquired are included in the consolidated financial statements
up to or from the date that control passes from or to the Group. Non-controlling interests in the net assets of the Group are identified
separately from shareholders’ equity. Non-controlling interests consist of the amount of those interests at the date of the original
acquisition and the non-controlling share of changes in equity since the date of acquisition.
The Directors of RELX PLC, having made appropriate enquiries, consider that adequate resources exist for the Group to continue in
operational existence for the foreseeable future and that, therefore, it is appropriate to adopt the going concern basis in preparing the
consolidated financial statements for the year ended 31 December 2021.
In preparing the group financial statements management has considered the impact of climate change, taking into account the relevant
disclosures in the Strategic Report, including those made in accordance with the recommendations of the Taskforce on Climate-related
Financial Disclosure. This included an assessment of assets with indefinite and long lives and how they could be impacted by measures
taken to address global warming. Recognising that the environmental impact of the group’s operations, and the use of the group’s
products, is relatively low, no issues were identified that would impact the carrying values of such assets or have any other impact
on the financial statements.
Accounting policies
The Group’s consolidated financial statements are prepared in accordance with UK adopted International Accounting Standards in
conformity with the requirements of the Companies Act 2006 and International Financial Reporting Standards (IFRS) as issued by
the International Accounting Standards Board (IASB). The accounting policies under IFRS are included in the relevant notes to the
consolidated financial statements. The accounting policies below are applied throughout the financial statements and are unchanged
from those applied in preparing the consolidated financial statements for the year ended 31 December 2020.
Foreign exchange translation
The consolidated financial statements are presented in sterling.
Transactions in foreign currencies are recorded at the rate of exchange prevailing on the date of the transaction. Non-monetary assets
and liabilities that are measured at historical cost in foreign currencies are translated using the exchange rate at the date of the transaction.
At each statement of financial position date, monetary assets and liabilities that are denominated in foreign currencies are retranslated
at the rate prevailing on the statement of financial position date. Exchange differences arising are recorded in the income statement
other than where hedge accounting applies, as set out on pages 167 to 172.
Assets and liabilities of foreign operations are translated at exchange rates prevailing on the statement of financial position date. Income
and expense items and cash flows of foreign operations are translated at the average exchange rate for the period. Significant individual
items of income and expense and cash flows in foreign operations are translated at the rate prevailing on the date of transaction.
Exchange differences arising are classified as equity and transferred to the translation reserve. When foreign operations are
disposed of, the related cumulative translation differences are recognised within the income statement in the period.
The Group uses derivative financial instruments, primarily forward contracts, to hedge its exposure to certain foreign exchange risks.
Details of the Group’s accounting policies in respect of derivative financial instruments are set out on page 167.
Critical judgements and key sources of estimation uncertainty
The preparation of financial statements requires management to make judgements and estimates in the application of accounting
policies used to report the financial position, results and cash flows of the Group. The actual outcome may differ to these estimates.
The critical judgements and key sources of estimation uncertainty are summarised below. Further detail is provided in the notes to
the financial statements as referenced.
Critical judgements
§ Acquired intangible assets: identification of separate intangible assets on acquisition (see note 14)
§ Capitalisation of development spend: assessing the potential value of a development project and determining the costs which are
eligible for capitalisation (see note 14)
Market segmentsGovernanceFinancial statements and other informationFinancial reviewCorporate ResponsibilityOverview 144
Notes to the consolidated financial statements
for the year ended 31 December 2021
1 Basis of preparation and accounting policies (continued)
Key sources of estimation uncertainty
§ Acquired intangible assets: determining future cashflows and discount rate used in valuation (see notes 14)
§ Taxation: the valuation of provisions related to uncertain tax positions (see note 9)
§ Defined benefit pension obligation: determining an appropriate rate at which the future pension payments are discounted,
mortality and inflation assumptions (see note 6)
Other significant accounting policies
The accounting policy in respect of revenue recognition is also significant in determining the financial condition and results of the Group.
The application of this policy is straightforward, and is included in note 2.
Standards and amendments effective for the year
The interpretations and amendments to IFRS effective for 2021 have not had a significant impact on the Group’s accounting policies
or reporting.
Standards, amendments and interpretations not yet effective
A number of amendments and interpretations have been issued which are not expected to have any significant impact on the accounting
policies and reporting.
2 Revenue, operating profit and segment analysis
Accounting policy
The Group’s reported segments are based on the internal reporting structure and financial information provided to the Board.
Adjusted operating profit is the key segmental profit measure used by the Group in assessing performance. Adjusted operating
profit is reconciled to operating profit on page 193.
Revenue arises from the provision of products and services under contracts with customers. In all cases, revenue is recognised
to depict the transfer of promised goods or services to customers in an amount that reflects the consideration to which the entity
expects to be entitled in exchange for those goods or services, and is recognised when the customer obtains control of the goods
or service.
Revenue is stated at the transaction price, which includes allowance for anticipated discounts and returns and excludes customer
sales taxes and other amounts to be collected on behalf of third-parties.
Where the goods or services promised within a contract are distinct, they are identified as separate performance obligations
and are accounted for separately.
Where separate performance obligations are identified, total revenue is allocated on the basis of relative stand-alone selling prices
or management’s best estimate of relative value where stand-alone selling prices do not exist. Management estimates may include
a cost-plus method or comparable product approach, but must be supported by objective evidence. A residual approach may be
applied where it is not possible to derive a reliable management estimate for a specific component.
Our subscription and exhibition related revenue streams require payment in advance of the service being provided. Payment
terms offered to customers are in line with the standard in the markets and geographies we operate in, and contracts do not
contain significant financing components. Contracts for our transactional electronic revenue streams generally have payments
that vary with volume of usage. Other than that, our contracts do not involve variable consideration.
Revenue is recognised for the various categories as follows:
§ Subscriptions – revenue comprises income derived from the periodic distribution or update of a product. Subscription revenue
is generally invoiced in advance and recognised systematically over the period of the subscription. Recognition is either on a
straight-line basis where the transaction involves the transfer of goods and services to the customer in a consistent manner
over a specific period of time; or based on the value received by the customer where the goods and services are not delivered
in a consistent manner
§ Transactional – revenue is recognised when control of the product is passed to the customer or the service has been performed.
For exhibitions, revenue primarily comprises income from exhibitors and attendees at exhibitions. Exhibition revenue is
recognised on occurrence of the exhibition
RELX Annual report and financial statements 2021 | Financial statements and other information 145
2 Revenue, operating profit and segment analysis (continued)
RELX is a global provider of information-based analytics and decision tools for professional and business customers. Operating
in four major market segments: Risk provides customers with information-based analytics and decision tools that combine public
and industry-specific content with advanced technology and algorithms to assist them in evaluating and predicting risk and
enhancing operational efficiency; Scientific, Technical & Medical provides information and analytics that help institutions and
professionals progress science, advance healthcare and improve performance; Legal provides legal, regulatory and business
information and analytics that helps customers increase their productivity, improve decision-making and achieve better outcomes;
and Exhibitions is a leading global events business combining face-to-face with data and digital tools to help customers learn about
markets, source products and complete transactions.
ANALYSIS BY BUSINESS SEGMENT
Revenue
Adjusted operating profit
Risk
Scientific, Technical & Medical
Legal
Exhibitions*
Sub-total
Unallocated items**
Total
2021
£m
2,474
2,649
1,587
534
7,244
–
7,244
2020
£m
2,417
2,692
1,639
362
7,110
–
7,110
2019
£m
2,316
2,637
1,652
1,269
7,874
–
7,874
2021
£m
915
1,001
326
10
2,252
(42)
2,210
2020
£m
894
1,021
330
(164)
2,081
(5)
2,076
2019
£m
853
982
330
331
2,496
(5)
2,491
* Exceptional costs excluded from adjusted operating profit in 2020, are disclosed on page 147.
**Includes a £35m one-off charge relating to reductions in our corporate real estate footprint.
2021
Revenue by geographical market
North America
Europe*
Rest of world
Total revenue
Revenue by format
Electronic
Face-to-face
Print
Total revenue
Revenue by type
Subscriptions
Transactional
Total revenue
Risk
Scientific, Technical
& Medical
Legal
Exhibitions
1,957
342
175
2,474
2,453
13
8
2,474
989
1,485
2,474
1,215
602
832
2,649
2,334
2
313
2,649
1,970
679
2,649
1,049
341
197
1,587
1,385
9
193
1,587
1,255
332
1,587
100
187
247
534
58
476
–
534
–
534
534
Total
4,321
1,472
1,451
7,244
6,230
500
514
7,244
4,214
3,030
7,244
* Europe includes revenue of £476m from the United Kingdom (2020: £464m; 2019: £529m).
RELX Annual report and financial statements 2021 | Notes to the consolidated financial statementsMarket segmentsGovernanceFinancial statements and other informationFinancial reviewCorporate ResponsibilityOverview 146
Notes to the consolidated financial statements
for the year ended 31 December 2021
2 Revenue, operating profit and segment analysis (continued)
2020
Revenue by geographical market
North America
Europe
Rest of world
Total revenue
Revenue by format
Electronic
Face-to-face
Print
Total revenue
Revenue by type
Subscriptions
Transactional
Total revenue
2019
Revenue by geographical market
North America
Europe
Rest of world
Total revenue
Revenue by format
Electronic
Face-to-face
Print
Total revenue
Revenue by type
Subscriptions
Transactional
Total revenue
Risk
Scientific, Technical
& Medical
Legal
Exhibitions
1,921
327
169
2,417
2,387
19
11
2,417
944
1,473
2,417
1,224
621
847
2,692
2,326
1
365
2,692
2,048
644
2,692
1,119
338
182
1,639
1,422
7
210
1,639
1,287
352
1,639
43
83
236
362
44
318
–
362
–
362
362
Risk
Scientific, Technical
& Medical
Legal
Exhibitions
1,843
317
156
2,316
2,264
25
27
2,316
872
1,444
2,316
1,182
635
820
2,637
2,214
8
415
2,637
1,970
667
2,637
1,118
340
194
1,652
1,400
9
243
1,652
1,287
365
1,652
248
508
513
1,269
51
1,218
–
1,269
–
1,269
1,269
Total
4,307
1,369
1,434
7,110
6,179
345
586
7,110
4,279
2,831
7,110
Total
4,391
1,800
1,683
7,874
5,929
1,260
685
7,874
4,129
3,745
7,874
Over half of RELX’s revenue comes from subscription arrangements, and revenue for these is generally recognised on a straight-line
basis over the time period covered by the agreement, in line with the provision of services. There are a number of multi-year contracts,
mainly in Risk, where revenue is recognised on the achievement of delivery milestones or other specified performance obligations.
As at 31 December 2021, the aggregate amount of the transaction price of such contracts which relates to performance obligations
which have not yet been delivered was approximately £95m (2020: £146m). It is expected that revenue will be recognised in relation to
this amount over the next six years.
ANALYSIS OF REVENUE BY GEOGRAPHICAL ORIGIN
North America
Europe
Rest of world
Total
2021
£m
4,204
2,547
493
7,244
2020
£m
4,192
2,436
482
7,110
2019
£m
4,308
2,832
734
7,874
Revenue by geographical origin from the United Kingdom in 2021 was £1,248m (2020: £1,176m; 2019: £1,320m).
RELX Annual report and financial statements 2021 | Financial statements and other information 147
2 Revenue, operating profit and segment analysis (continued)
ANALYSIS BY BUSINESS SEGMENT
Risk
Scientific, Technical & Medical
Legal
Exhibitions
Total
Expenditure on
acquired goodwill and
intangible assets
2021
£m
208
58
12
9
287
2020
£m
822
169
–
6
997
2019
£m
47
65
139
251
502
Capital expenditure
additions
Amortisation of acquired
intangible assets
Total depreciation and
other amortisation
2021
£m
83
87
145
24
339
2020
£m
93
94
153
24
364
2019
£m
96
104
155
26
381
2021
£m
186
63
27
22
298
2020
£m
192
65
68
51
376
2019
£m
170
62
24
39
295
2021
£m
93
144
220
30
487
2020
£m
98
148
210
73
529
2019
£m
89
136
178
41
444
Capital expenditure comprises additions to property, plant and equipment and internally developed intangible assets.
Amortisation of acquired intangible assets includes amounts in respect of joint ventures of £1m (2020: nil; 2019: £1m) in Exhibitions.
Depreciation and other amortisation includes depreciation on property, plant and equipment and right-of-use assets and amortisation
of internally developed intangible assets and pre-publication costs. In 2020, £38m of depreciation and other amortisation was classified
as exceptional in Exhibitions. Excluding this amount gives total depreciation and other amortisation of £491m for 2020.
ANALYSIS OF NON-CURRENT ASSETS BY GEOGRAPHICAL LOCATION
North America
Europe
Rest of world
Total
2021
£m
8,657
2,123
413
11,193
2020
£m
8,940
2,058
418
11,416
2019
£m
8,365
2,156
481
11,002
Non-current assets held in the United Kingdom totalled £1,299m (2020: £1,158m; 2019: £1,248m). Non-current assets by geographical
location exclude amounts relating to deferred tax, pension assets and derivative financial instruments.
Operating profit is reconciled to adjusted operating profit as follows:
RECONCILIATION OF OPERATING PROFIT TO ADJUSTED OPERATING PROFIT
Operating profit
Adjustments:
Amortisation of acquired intangible assets
Acquisition-related items
Reclassification of tax in joint ventures
Reclassification of finance income in joint ventures
Exceptional costs in Exhibitions
Adjusted operating profit
2021
£m
1,884
298
21
7
–
–
2,210
2020
£m
1,525
376
(12)
5
(1)
183
2,076
2019
£m
2,101
295
84
12
(1)
–
2,491
Acquisition-related items in the year included a gain of £27m (2020: £76m) from the revaluation of a put and call option arrangement
relating to a non-controlling interest in a subsidiary within Legal.
A £35m one-off charge relating to reductions in our corporate real estate footprint has been recorded. This primarily includes a property
related provision of £20m and an impairment of right-of-use assets of £14m.
In 2020, Exhibitions incurred exceptional costs of £183m. Of the £183m exceptional costs, £135m were cash costs, of which £52m
were paid in 2021 (2020: £51m). All costs were included within administration and other expenses in the income statement.
The share of post-tax results of joint ventures of £29m (2020: £15m; 2019: £41m) included in operating profit comprised £4m (2020: £1m;
2019: £2m) relating to Risk, £6m (2020: £4m; 2019: £3m) relating to Legal and £19m (2020: £10m; 2019: £36m) relating to Exhibitions.
RELX Annual report and financial statements 2021 | Notes to the consolidated financial statementsMarket segmentsGovernanceFinancial statements and other informationFinancial reviewCorporate ResponsibilityOverview 148
Notes to the consolidated financial statements
for the year ended 31 December 2021
3 Operating expenses
Operating profit is stated after charging/(crediting) the following:
Total staff costs
Depreciation and amortisation
Amortisation of acquired intangible assets
Share of joint ventures’ amortisation of acquired intangible assets
Amortisation of acquired intangible assets including joint ventures’ share
Amortisation of internally developed intangible assets
Depreciation of property, plant and equipment
Depreciation of right-of-use assets
Pre-publication amortisation
Total depreciation and other amortisation
Total depreciation and amortisation (including amortisation of acquired intangibles)
Other expenses and income
Cost of sales including pre-publication costs and inventory expenses
Short-term and low value lease expenses
Operating lease rentals income
Note
5
14
14
16
2
2021
£m
2,549
2020
£m
2,555
2019
£m
2,498
297
1
298
295
52
80
60
487
785
376
–
376
319
60
88
62
529
905
294
1
295
249
58
82
55
444
739
2,562
21
(1)
2,487
21
(1)
2,755
20
(1)
The amortisation of acquired intangible assets is included within administration and other expenses. In 2020, £38m of depreciation and
other amortisation was classed as exceptional in Exhibitions. Excluding this amount gives a total depreciation and other amortisation of
£491m for 2020.
4 Auditor’s remuneration
Auditor’s remuneration
Payable to the auditors of RELX PLC
Payable to the auditors of the Group’s subsidiaries
Audit services
Audit-related assurance services
Total audit and audit-related assurance services
Other services: due diligence and other transaction-related services
Total non-audit related services
Total auditor’s remuneration
2021
£m
0.9
7.5
8.4
0.5
8.9
–
–
8.9
2020
£m
0.9
8.3
9.2
0.8
10.0
–
–
10.0
2019
£m
0.8
7.8
8.6
0.6
9.2
0.1
0.1
9.3
Amounts payable to the auditors of the Group’s subsidiaries include amounts for the audit of internal controls over financial reporting
in accordance with the US Sarbanes-Oxley Act. 2021 audit-related assurance services included no fees for services relating to RELX
pension plans (2020: nil). The previously reported 2020 fees paid to EY for audit services have been revised to include additional amounts
for expenses incurred and final fees for statutory audits which took place subsequent to the audit of the RELX consolidated accounts.
RELX Annual report and financial statements 2021 | Financial statements and other information 149
5 Personnel
Accounting policy
Share based remuneration
The fair value of share based remuneration is determined at the date of grant and recognised as an expense in the income statement
on a straight-line basis over the vesting period, taking account of the estimated number of shares that are expected to vest. Market
based performance criteria are taken into account when determining the fair value at the date of grant. Non-market based performance
criteria are taken into account when estimating the number of shares expected to vest. The fair value of share based remuneration
is determined by use of a binomial or Monte Carlo simulation model as appropriate. All of the Group’s share based remuneration is
equity settled.
Staff costs
Wages and salaries
Social security costs
Pensions
Share based remuneration
Total staff costs
Note
6
2021
£m
2,157
214
133
45
2,549
2020
£m
2,173
232
125
25
2,555
2019
£m
2,116
230
120
32
2,498
The Group provides a number of share based remuneration schemes to directors and employees. The principal share based
remuneration schemes are the Executive Share Option Schemes (ESOS), the Long-Term Incentive Plan (LTIP) and the Retention
Share Plan (RSP). Share options granted under ESOS are exercisable after three years and up to ten years from the date of grant at a
price equivalent to the market value of the respective shares at the date of grant. Conditional shares granted under LTIP and RSP are
exercisable after three years for nil consideration if conditions are met. Other awards principally relate to all employee share based
saving schemes in the UK and the Netherlands. Further details are provided in the Remuneration Report on pages 100 to 121.
NUMBER OF PEOPLE EMPLOYED: FULL-TIME EQUIVALENTS
At 31 December
Average during the year
Business segment
Risk
Scientific, Technical & Medical
Legal
Exhibitions
Sub-total
Corporate/shared functions
Total
Geographical location
North America
Europe
Rest of world
Total
2021
2020
2019
2021
2020
2019
10,000
8,700
10,500
3,500
32,700
800
33,500
14,000
9,300
10,200
33,500
9,700
8,600
10,400
3,700
32,400
800
33,200
14,200
9,500
9,500
33,200
9,100
8,100
10,600
4,600
32,400
800
33,200
14,100
9,500
9,600
33,200
9,800
8,600
10,300
3,600
32,300
800
33,100
13,900
9,400
9,800
33,100
9,600
8,300
10,500
4,200
32,600
800
33,400
14,200
9,600
9,600
33,400
9,000
8,000
10,600
4,400
32,000
800
32,800
14,000
9,400
9,400
32,800
The number of UK full-time equivalents as at 31 December 2021 was 5,400 (2020: 5,400; 2019: 5,400) and the average during the year was
5,400 (2020: 5,400; 2019: 5,300).
RELX Annual report and financial statements 2021 | Notes to the consolidated financial statementsMarket segmentsGovernanceFinancial statements and other informationFinancial reviewCorporate ResponsibilityOverview 150
Notes to the consolidated financial statements
for the year ended 31 December 2021
6 Pension schemes
Accounting policy
The expense of defined benefit pension schemes and other post-retirement employee benefits is determined using the projected
unit credit method and charged in the income statement as an operating expense, based on actuarial assumptions reflecting market
conditions at the beginning of the financial year. Actuarial gains and losses are recognised in full in the statement of comprehensive
income in the period in which they occur.
Past service costs and credits are recognised immediately at the earlier of when plan amendments or curtailments occur and when
related restructuring costs or termination benefits are recognised. Settlements are recognised when they occur.
Net pension obligations in respect of defined benefit schemes are included in the statement of financial position at the present value
of scheme liabilities, less the fair value of scheme assets. Where schemes are in surplus, i.e. assets exceed liabilities, the net
pension assets are separately included in the statement of financial position. Any net pension asset is limited to the extent that the
asset is recoverable.
The expense of defined contribution pension schemes and other employee benefits is charged in the income statement as incurred.
Critical judgement and key source of estimation uncertainty
At 31 December 2021, the Group operates defined benefit pension schemes in the UK and the US. These schemes require management
to exercise judgement in estimating the ultimate cost of providing post-employment benefits, especially given the length of each
scheme’s liabilities. Accounting for defined benefit pension schemes involves judgement and estimation about uncertain events,
including the life expectancy of the members, inflation and the rate at which the future pension payments are discounted. Estimates
for these factors are used in determining the pension cost and liabilities reported in the financial statements. The estimates made
around future developments of each of the critical assumptions are made in conjunction with independent actuaries, and each
scheme is subject to a periodic review by independent actuaries. The discount rate, inflation rate and mortality assumptions may
have a material effect in determining the defined benefit pension obligation and cost which are reported in the financial statements.
Information regarding the more significant assumptions used for valuation is provided below, together with a sensitivity analysis.
A number of pension schemes are operated around the world. The largest defined benefit schemes as at 31 December 2021 were in the
UK and the US, and are summarised below.
Major defined benefit schemes in place at 31 December 2021
The UK scheme is a final salary scheme and is closed to new hires. Members accrue a portion of their final pensionable earnings based
on the number of years of service. The US scheme is a cash balance scheme and was closed to future accruals effective 1 January 2019.
Each of the major defined benefit schemes is administered by a separate fund that is legally separated from the Group. The trustees
of the pension funds in the UK and plan fiduciaries of the US scheme are required by law to act in the interest of the funds’ beneficiaries.
In the UK, the trustees of the pension fund are responsible for the investment policy with regard to the assets of the fund. The board of
trustees consists of an equal number of company-appointed and member-nominated Directors. In the US, the fiduciary duties for the
scheme are allocated between committees which are staffed by senior employees of the Group; the investment committee has the
primary responsibility for the investment and management of plan assets. The funding of the Group’s major schemes reflects the
different rules within each jurisdiction.
In the UK, the level of funding is determined by statutory triennial actuarial valuations in accordance with pensions legislation. Where
the scheme falls below 100% funded status, the Group and the scheme trustees must agree on how the deficit is to be remedied. The
UK Pensions Regulator has significant powers and sets out in codes and guidance the parameters for scheme funding.
The US scheme has an annual statutory valuation which forms the basis for establishing the employer contribution each year (subject
to ERISA and IRS minimums). Should the statutory funded status fall to below 100%, the US Pension Protection Act requires the deficit
to be rectified with additional contributions over a seven-year period. The US scheme’s funded status is in excess of 100%.
RELX Annual report and financial statements 2021 | Financial statements and other information 151
6 Pension schemes (continued)
The Group and the trustees of the UK scheme have completed the 2021 triennial valuation under which the Group has committed to
providing £126m of deficit funding contributions to the scheme over the period 2022 to 2024. Employer cash contributions to defined
benefit pension schemes in respect of 2022 are expected to be approximately £64m including a £50m pension deficit funding
contribution relating to the UK scheme recovery plan.
The pension expense (excluding interest amounts) recognised in the income statement consists of:
Defined benefit pension expense
Defined contribution pension expense
Total
2021
£m
24
109
133
2020
£m
11
114
125
2019
£m
11
109
120
£133m (2020: £125m; 2019: £120m) of the total pension cost is recognised within operating profit.
The amounts recognised in the income statement in respect of defined benefit pension schemes during the year are presented by major
scheme as follows:
Service cost
Settlement and past service credits
Defined benefit pension expense
Net interest on net defined benefit obligation
Net defined benefit pension expense
2021
2020
2019
UK
£m
21
–
21
8
29
US
£m
3
–
3
1
4
Total
£m
24
–
24
9
33
UK
£m
21
–
21
9
30
US
£m
3
(13)
(10)
1
(9)
Total
£m
24
(13)
11
10
21
UK
£m
21
(8)
13
9
22
US
£m
3
(5)
(2)
3
1
Total
£m
24
(13)
11
12
23
In 2020, the past service credit relates to changes to the US scheme allowing in-service distributions to be made. In 2019, the past
service credit relates to changes to both the UK and US schemes.
Net interest on net defined benefit pension scheme liabilities is presented within net finance costs in the income statement.
The significant valuation assumptions, determined for each major scheme in conjunction with the respective independent actuaries,
are presented below. The net defined benefit pension expense for each year is based on the assumptions and scheme valuations set
at 31 December of the prior year.
AS AT 31 DECEMBER
Discount rate
Inflation
2021
2020
2019
UK
1.95%
3.30%
US
2.80%
2.50%
UK
1.45%
2.80%
US
2.45%
2.50%
UK
2.05%
2.95%
US
3.25%
2.50%
Discount rates are set by reference to high-quality corporate bond yields.
Mortality assumptions make allowance for future improvements in longevity and have been determined by reference to applicable
mortality statistics. The average life expectancy assumptions are set out below:
AS AT 31 DECEMBER 2021
Member currently aged 60 years
Member currently aged 45 years
Male average life
expectancy
Female average
life expectancy
UK
85
87
US
86
86
UK
89
90
US
88
89
RELX Annual report and financial statements 2021 | Notes to the consolidated financial statementsMarket segmentsGovernanceFinancial statements and other informationFinancial reviewCorporate ResponsibilityOverview 152
Notes to the consolidated financial statements
for the year ended 31 December 2021
6 Pension schemes (continued)
The amount recognised in the statement of financial position in respect of defined benefit pension schemes at the start and end of the
year and the movements during the year were as follows:
Defined benefit obligation
At start of year
Service cost
Past service credits
Interest on pension scheme liabilities
Actuarial gain/(loss) on financial assumptions
Actuarial (loss)/gain arising from experience assumptions
Contributions by employees
Benefits paid
Exchange translation differences
At end of year
Fair value of scheme assets
At start of year
Interest income on plan assets
Return on assets excluding amounts included in interest income
Contributions by employer
Contributions by employees
Benefits paid
Exchange translation differences
At end of year
Opening net deficit
Service cost
Net interest on net defined benefit obligation
Settlement and past service credits
Contributions by employer
Actuarial gains/(losses)
Exchange translation differences
Net pension obligation
Impact of asset ceiling
Overall net pension obligation
2021
2020
UK
£m
US
£m
Total
£m
UK
£m
US
£m
Total
£m
(4,668)
(21)
–
(67)
155
(152)
(9)
133
–
(4,629)
4,076
59
318
61
9
(133)
–
4,390
(592)
(21)
(8)
–
61
321
–
(239)
(3)
(242)
(1,062)
(3)
–
(25)
38
(1)
–
69
(8)
(992)
1,077
24
(39)
6
–
(69)
8
1,007
15
(3)
(1)
–
6
(2)
–
15
(42)
(27)
(5,730)
(24)
–
(92)
193
(153)
(9)
202
(8)
(5,621)
5,153
83
279
67
9
(202)
8
5,397
(577)
(24)
(9)
–
67
319
–
(224)
(45)
(269)
(4,251)
(21)
–
(85)
(492)
60
(8)
129
–
(4,668)
3,767
76
291
63
8
(129)
–
4,076
(484)
(21)
(9)
–
63
(141)
–
(592)
–
(592)
(1,018)
(3)
13
(31)
(99)
(13)
–
56
33
(1,062)
995
30
135
7
–
(56)
(34)
1,077
(23)
(3)
(1)
13
7
23
(1)
15
(47)
(32)
(5,269)
(24)
13
(116)
(591)
47
(8)
185
33
(5,730)
4,762
106
426
70
8
(185)
(34)
5,153
(507)
(24)
(10)
13
70
(118)
(1)
(577)
(47)
(624)
As at 31 December 2021, the defined benefit obligations comprised £5,360m (2020: £5,459m) in relation to funded schemes and
£261m (2020: £271m) in relation to unfunded schemes.
The weighted average duration of defined benefit scheme liabilities is 19 years in the UK (2020: 19 years) and 11 years in the US
(2020: 11 years). Deferred tax assets of £68m (2020: £125m) are recognised in respect of the pension scheme deficits.
A net pension asset has been recognised in relation to the US funded scheme after considering the guidance in IAS 19 – Employee
Benefits and IFRIC 14. The split between net pension obligations and net pension assets is as follows:
Net pension asset recognised
Net pension obligation
Overall net pension obligation
2021
£m
46
(315)
(269)
2020
£m
47
(671)
(624)
RELX Annual report and financial statements 2021 | Financial statements and other information 6 Pension schemes (continued)
Amounts recognised in the statement of comprehensive income are set out below:
Gains and losses arising during the year:
Experience (losses)/gains on scheme liabilities
Experience gains on scheme assets
Actuarial gains/(losses) on the present value of scheme liabilities due to changes in:
– discount rates
– inflation
– other actuarial assumptions
Net cumulative losses at start of year
Net cumulative losses at end of year
153
2019
£m
17
470
(743)
142
(10)
(124)
(704)
(828)
2021
£m
(153)
279
463
(290)
20
319
(946)
(627)
2020
£m
47
426
(671)
127
(47)
(118)
(828)
(946)
In addition, a gain of £2m (2020: £37m loss) is recognised in the statement of comprehensive income in relation to the asset ceiling. As
at 31 December 2021, the impact of the asset ceiling on the overall net pension obligation is £45m (2020: £47m). In 2021 there was no
(2020: £3m) foreign exchange gain on the asset ceiling.
The major categories and fair values of scheme assets at the end of the reporting period are as follows:
FAIR VALUE OF SCHEME ASSETS
Equities
Liability matching assets
Property funds and ground leases
Direct lending
Cash and cash equivalents
Other
Total
UK
£m
1,595
1,704
743
208
127
13
4,390
2021
US
£m
5
977
–
–
25
–
1,007
Total
£m
1,600
2,681
743
208
152
13
5,397
UK
£m
1,563
1,499
706
204
95
9
4,076
2020
US
£m
10
1,052
–
–
12
3
1,077
Total
£m
1,573
2,551
706
204
107
12
5,153
Included within liability matching assets are government bonds totalling £2,037m (2020: £1,948m).
Assets and obligations associated with the schemes are sensitive to changes in the market values of assets and the market-related
assumptions used to value scheme liabilities. In particular, adverse changes to asset values, discount rates or inflation could increase
future pension costs and funding requirements.
Typically, the Group’s schemes are exposed to: investment risks, whereby actual rates of return on plan assets may be below those rates used
to determine the defined benefit obligations, and interest rate risks, whereby scheme deficits may increase if bond yields in the UK and
the US decline and are not offset by returns in liability matching and other assets. The schemes are also exposed to other risks, such
as unanticipated future increases in member longevity patterns and inflation, all potentially leading to an increase in scheme liabilities.
Investment policies of each scheme are intended to ensure continuous payment of defined benefit pensions in the short term and long
term. Efforts are made to limit risks on marketable securities by adopting investment policies that diversify assets across geographies
and among equities, liability matching assets, property funds, cash and other assets. Asset allocations are dependent on a variety of
factors including the duration of scheme liabilities and the funded position of the plan.
All equities and bonds have quoted prices in active markets.
Sensitivity analysis
The valuation of the Group’s pension scheme liabilities involves significant actuarial assumptions, being the life expectancy of the
members, inflation and the rate at which the future pension payments are discounted. Differences arising from actual experience or future
changes in assumptions may materially affect future pension charges. In particular, changes in assumptions for discount rates, inflation
and life expectancies that are reasonably possible would have the following approximate effects on the defined benefit pension obligations:
Increase/decrease of 0.25% in discount rate
Increase/decrease of 0.25% in the expected inflation rate
Increase/decrease of one year in assumed life expectancy
£m
237
158
219
The above analysis has been calculated on the same basis used to determine the defined benefit obligation recognised in the statement
of financial position. There has been no change in the methods used to prepare the analysis compared with prior years. This sensitivity
analysis may not be representative of the actual change in the defined benefit obligation as it is unlikely that changes in the above
assumptions would occur in isolation as some of the assumptions may be correlated.
RELX Annual report and financial statements 2021 | Notes to the consolidated financial statementsMarket segmentsGovernanceFinancial statements and other informationFinancial reviewCorporate ResponsibilityOverview
154
Notes to the consolidated financial statements
for the year ended 31 December 2021
7 Net finance costs
Accounting policy
Borrowing costs that are directly attributable to the acquisition, construction or production of an asset that takes a substantial period of
time to bring to use are capitalised. All other interest on borrowings is expensed as incurred. The cost of issuing borrowings is generally
expensed over the period of borrowing so as to produce a constant periodic rate of charge.
Interest on short-term bank loans, overdrafts and commercial paper
Interest on term debt
Interest on lease liabilities
Total borrowing costs
Losses on loans and derivatives not designated as hedges
Net financing charge on defined benefit pension schemes and other
Finance costs
Interest on bank deposits
Interest income on net finance lease receivables
Fair value gains on designated fair value hedge relationships
Gains on loans and derivatives not designated as hedges
Finance income
Net finance costs
2021
£m
(11)
(106)
(8)
(125)
(16)
(9)
(150)
1
–
7
–
8
(142)
2020
£m
(17)
(122)
(12)
(151)
(13)
(11)
(175)
2
1
–
–
3
(172)
2019
£m
(20)
(266)
(15)
(301)
–
(13)
(314)
3
2
1
3
9
(305)
Losses of £1m (2020: gains of £3m; 2019: losses of £1m) on derivatives designated as cash flow hedges were recognised in other
comprehensive income and accumulated in the hedge reserve, and may be reclassified to the income statement in future periods.
Losses of nil (2020: £4m; 2019: nil) in total were transferred from the hedge reserve in the period.
In 2019, the interest charge on term debt included a charge of £99m in respect of the early redemption of bonds that were due to be
repaid in October 2022. The redemption of these bonds took place in January 2020 and was committed to at 31 December 2019.
8 Disposals and other non-operating items
Accounting policy
Assets of businesses that are available for immediate sale in their current condition and for which a sales process is considered
highly probable to complete are classified as assets held for sale and are carried at the lower of carrying value and fair value less
costs to sell. Fair value is based on anticipated disposal proceeds, typically derived from firm or indicative offers from potential
acquirers. Non-current assets are not amortised or depreciated following their classification as held for sale. Liabilities of
businesses held for sale are also separately classified on the statement of financial position. Fair value movements in the venture
capital portfolio are reported within disposals and other items – see note 15.
Revaluation of investments
Gain/(loss) on disposal of businesses and assets held for sale
Net gain on disposals and other non-operating items
2021
£m
16
39
55
2020
£m
151
(21)
130
2019
£m
25
26
51
The revaluation of investments relates mainly to venture fund investments, further details of which are provided in note 15.
During the year, net proceeds of £178m were received on the disposal of venture fund investments. The majority of these proceeds
were related to the disposal of the investment in Palantir Technologies Inc which was valued at £173m on 31 December 2020, and
was disposed of in February 2021 for gross proceeds of £187m.
RELX Annual report and financial statements 2021 | Financial statements and other information 155
9 Taxation
Accounting policy
Tax expense comprises current and deferred tax. Current and deferred tax are charged or credited in the income statement except
to the extent that the tax arises from a transaction or event which is recognised, in the same or a different period, outside the income
statement (either in other comprehensive income, directly in equity, or through a business combination), in which case the tax
appears in the same statement as the transaction that gave rise to it.
Current tax is the amount of corporate income taxes expected to be payable or recoverable based on the profit for the period as
adjusted for items that are not taxable or not deductible, and is calculated using tax rates and laws that were enacted or substantively
enacted at the date of the statement of financial position. Management periodically evaluates positions taken in tax returns with
respect to situations in which applicable tax regulation is subject to interpretation. Provisions are established where appropriate
on the basis of amounts expected to be paid to the tax authorities.
Current tax includes amounts provided in respect of uncertain tax positions when management expects that, upon examination
of the uncertainty by a tax authority in possession of all relevant knowledge, it is more likely than not that an economic outflow will
occur. Changes in facts and circumstances underlying these provisions are reassessed at the date of each statement of financial
position, and the provisions are remeasured as required to reflect current information.
Deferred tax is recognised on temporary differences arising between the tax bases of assets and liabilities and their carrying
amounts in the statement of financial position. Deferred tax is calculated using tax rates and laws that have been enacted or
substantively enacted at the end of the reporting period, and which are expected to apply when the related deferred tax asset
is realised or the deferred tax liability is settled.
Deferred tax liabilities are generally recognised for all taxable temporary differences but not recognised for taxable temporary
differences arising on investments in subsidiaries, associates and joint ventures where the reversal of the temporary difference
can be controlled and it is probable that the difference will not reverse in the foreseeable future.
Deferred tax assets are recognised to the extent it is probable that taxable profits will be available against which the deductible
temporary differences can be utilised, and are reviewed at the end of each reporting period and reduced to the extent that it is no
longer probable that sufficient taxable profits will be available to allow all or part of the asset to be recovered.
Deferred tax assets and liabilities are not recognised in respect of temporary differences that arise on initial recognition of assets
and liabilities acquired other than in a business combination. Deferred tax is not discounted.
When the acquisition of an asset qualifies to be accounted for as a business combination, deferred tax is generally required to be
recognised on the difference between the tax base and the book base of the assets and liabilities acquired and assumed. The assets
acquired often include identifiable intangible assets as well as goodwill. In many jurisdictions, the manner in which a business
combination is effected will impact the tax deductibility and therefore the deferred tax recognised in relation to such intangibles
and goodwill.
In an ‘asset acquisition’, where the buyer acquires the trade and assets of a business, there is often a tax deduction available for the
amortisation of the identifiable intangible assets and sometimes for the goodwill. In this situation, deferred tax is recognised on the
difference between the tax base and the book base of the assets.
In a ‘share acquisition’, where the buyer acquires the share capital of a legal entity that continues to own the trade and assets, tax
deductions for amortisation are usually not available. Intangibles which do not qualify for tax deductions therefore give rise to a
deferred tax liability. However, deferred tax liabilities are not recognised on temporary differences that arise from goodwill where
that is not deductible for tax purposes.
Key source of estimation uncertainty
The Group is subject to tax in numerous jurisdictions, giving rise to complex tax issues. As a multinational enterprise, our tax
returns in the countries in which we operate are subject to tax authority audits as a matter of routine. While the Group is confident
that tax returns are appropriately prepared and filed, amounts are provided in respect of uncertain tax positions that reflect the risk
with respect to tax matters under active discussion with tax authorities, or which are otherwise considered to involve uncertainty.
The valuation of provisions required in relation to uncertain tax positions involves estimation. Provisions against uncertain tax
positions are measured using one of the following methods, depending on which of the methods management expects will better
predict the amount it will pay over to the tax authority:
§ The Single Best Estimate – where there is a single outcome that is more likely than not to occur. This will happen, for example,
where the tax outcome is binary (such as whether an entity can deduct an item of expenditure) or the range of possible outcomes
is narrow or concentrated on a single value. The most likely outcome may be that no tax is expected to be payable, in which case
the provision is nil; or
§ A Probability-Weighted Expected Value – where, on the balance of probabilities, something will be paid to the tax authority but
the possible outcomes are widely dispersed with low individual probabilities (i.e. there is no single outcome more likely than
not to occur). In this case, the provision is the sum of the probability-weighted amounts in the range.
RELX Annual report and financial statements 2021 | Notes to the consolidated financial statementsMarket segmentsGovernanceFinancial statements and other informationFinancial reviewCorporate ResponsibilityOverview 156
Notes to the consolidated financial statements
for the year ended 31 December 2021
9 Taxation (continued)
In assessing provisions against uncertain tax positions, management uses in-house tax experts, professional firms and previous
experience to inform the evaluation of risk. However, it remains possible that uncertainties will ultimately be resolved at amounts
greater or smaller than the liabilities recorded.
In particular, although we report cross-border transactions undertaken between Group subsidiaries on an arm’s-length basis in
tax returns in accordance with OECD guidelines, transfer pricing relies on the exercise of judgement and it is frequently possible
for there to be a range of legitimate and reasonable views. This means that it is impossible to be certain that the returns basis will
be sustained on examination. Discussions with tax authorities relating to cross-border transactions and other matters are ongoing
in each of our major trading jurisdictions. Although the timing and amount of final resolution of these uncertain tax positions cannot
be reliably predicted, no significant impact on the results of the Group is expected in the next year or foreseeable future.
Estimation of income taxes also includes assessments of the recoverability of deferred tax assets. Deferred tax assets are only
recognised to the extent that they are considered recoverable based on existing tax laws and forecasts of future taxable profits
against which the underlying tax deductions can be utilised. The recoverability of these assets is reassessed at the end of each
reporting period, and changes in recognition of deferred tax assets will affect the tax liability in the period of that reassessment.
Current tax
United Kingdom
Rest of world
Total current tax charge
Deferred tax
Tax expense
2021
£m
(46)
(376)
(422)
96
(326)
2020
£m
(80)
(184)
(264)
(11)
(275)
2019
£m
(141)
(241)
(382)
44
(338)
Cash tax paid (net) in the year was £342m (2020: £496m; 2019: £464m), which is different to the tax expense for the year set out above.
There are a number of reasons why the cash tax payments in a particular year will be different from the tax expense in the accounts:
§ Tax payments relating to a particular year’s profits are typically due partly in the year and partly in the following year. In 2020 there
was an acceleration of instalment payments in the UK.
§ Tax expense includes deferred tax, an accounting adjustment where an item is included in the income statement in one year but is
taxed in another year. The acquisition of intangible assets often results in deferred tax liabilities, the unwind of which does not
result in tax payments.
§ Current tax expense is the best estimate at the end of the period of cash tax expected to be paid. To the extent the final tax liability is
different, any cash tax impact will occur in a later period.
§ Some of the benefits of tax deductions related to share based payments, pensions and hedging are credited to equity or other
comprehensive income rather than to tax expense.
Set out below is a reconciliation of the difference between tax expense for the period and the theoretical expense calculated by
multiplying accounting profit by the applicable tax rate.
We believe the most meaningful applicable rate is that obtained by multiplying the accounting profits and losses of all consolidated
entities by the applicable domestic rate in each of those entities’ jurisdictions.
The net tax expense charged on profit before tax differs from the theoretical amount that would arise using the weighted average of
tax rates applicable to accounting profits and losses of the consolidated entities, as follows:
Profit before tax
Tax at average applicable rates
Tax effect of share of results of joint ventures
Income not taxable and expenses not deductible
Non-deductible costs of share based remuneration
Non-deductible disposal-related gains and losses
Deferred tax assets of the period not recognised
Change in recognition and measurement of deferred tax
Other adjustments in respect of prior periods
Tax expense
2021
2020
2019
£m
1,797
(418)
6
24
(2)
1
(8)
25
46
(326)
%
23.3%
(0.3)%
(1.4)%
0.1%
(0.1)%
0.4%
(1.4)%
(2.5)%
18.1%
£m
1,483
(331)
3
18
(2)
(2)
(19)
14
44
(275)
%
22.3%
(0.2)%
(1.2)%
0.1%
0.1%
1.3%
(0.9)%
(3.0)%
18.5%
£m
1,847
(418)
10
(3)
(1)
4
(15)
12
73
(338)
%
22.6%
(0.5)%
0.2%
0.1%
(0.2)%
0.8%
(0.6)%
(4.0)%
18.3%
RELX Annual report and financial statements 2021 | Financial statements and other information 157
9 Taxation (continued)
The weighted average applicable tax rate for the year was 23.3% (2020: 22.3%; 2019: 22.6%), reflecting the applicable rates in the
countries where the Group operates. The Group’s future tax charge will be sensitive to the geographic mix of profits and losses and
the tax rates and laws in force in the jurisdictions in which we operate.
In the UK, an increase in the corporation tax rate from 19% to 25% from April 2023 was enacted in 2021. In the Netherlands, an increase in
the corporation tax rate from 25% to 25.8% from 2022 and changes to loss recognition rules were also enacted in 2021. In total, the deferred
tax effect of changes in tax rates for the year was a tax credit of £8m (2020: £14m; 2019: £6m) in the income statement.
The effective tax rate of 18.1% (2020: 18.5%; 2019: 18.3%) was lower than the weighted average applicable rate of 23.3%. Income not
taxable and expenses not deductible include a credit of £15m (2020: £16m; 2019: £19m) relating to research and development credits
and £7m (2020: £19m; 2019: nil) relating to the revaluation of a put and call option arrangement. The change in recognition and
measurement of deferred tax includes the deferred tax effect of tax rate increases in the UK and the Netherlands of £8m and changes
to loss recognition rules in the Netherlands of £15m. In each of the three years, there were tax credits arising from the substantial
resolution of prior year tax matters.
The following tax has been recognised in other comprehensive income or directly in equity during the year:
Tax on items that will not be reclassified to profit or loss
Tax on actuarial movements on defined benefit pension schemes
Tax on items that may be reclassified to profit or loss
Tax on fair value movements on cash flow hedges
Net tax (charge)/credit recognised in other comprehensive income
Tax credit on share based remuneration recognised directly in equity
2021
£m
(48)
(1)
(49)
12
2020
£m
39
(4)
35
5
2019
£m
23
(8)
15
6
The £48m tax charge on actuarial movements on defined benefit pension schemes includes a £13m tax credit reflecting the revaluation
of pension related deferred tax balances to the newly enacted UK corporation tax rate of 25% (previously 19%).
Current tax assets
Current tax liabilities
Total
2021
£m
10
(192)
(182)
2020
£m
44
(149)
(105)
Current tax assets and liabilities are net amounts in countries where there is a legally enforceable right to offset assets and liabilities on
a net basis.
The Group maintained provisions for uncertain tax positions. The total carrying amount of these provisions of £228m (2020: £276m) is
comprised of a number of individually immaterial amounts. It is not expected that any resolution of the matters to which the provisions
relate, or changes in assumptions relating to the provisions, will have a material impact on the Group’s financial results in the next year.
Deferred tax assets
Deferred tax liabilities
Total
2021
£m
210
(591)
(381)
2020
£m
270
(665)
(395)
RELX Annual report and financial statements 2021 | Notes to the consolidated financial statementsMarket segmentsGovernanceFinancial statements and other informationFinancial reviewCorporate ResponsibilityOverview 158
Notes to the consolidated financial statements
for the year ended 31 December 2021
9 Taxation (continued)
Movements in deferred tax liabilities and assets (before taking into consideration the offsetting of balances within the same jurisdiction)
are summarised as follows:
Deferred tax liabilities
Deferred tax assets
Excess of tax
allowances
over
amortisation
of intangibles
£m
Acquired
intangible
assets
£m
Other
temporary
differences
£m
Excess of
amortisation
of intangibles
over tax
allowances
£m
Tax losses
carried
forward
£m
Pension
balances
£m
Other
temporary
differences
£m
Deferred tax (liability)/asset at
1 January 2020
Credit/(charge) to profit
Credit/(charge) to equity/other
comprehensive income
Acquisitions
Exchange translation differences
Deferred tax (liability)/asset at
1 January 2021
Credit/(charge) to profit
(Charge)/credit to equity/other
comprehensive income
Acquisitions
Exchange translation differences
Deferred tax (liability)/asset at
(150)
51
–
–
1
(98)
47
–
–
–
(543)
10
–
(97)
18
(612)
6
–
(33)
(4)
(290)
1
–
–
6
(283)
86
–
–
1
179
(13)
–
–
8
174
(9)
–
–
(8)
75
20
–
6
(2)
99
4
–
6
(2)
31 December 2021
(51)
(643)
(196)
157
107
96
–
29
–
–
125
(8)
(48)
–
(1)
68
279
(80)
(1)
1
1
200
(30)
7
–
–
177
(381)
Total
£m
(354)
(11)
28
(90)
32
(395)
96
(41)
(27)
(14)
The closing deferred tax liability balance of other temporary differences includes those relating to capitalised development costs
(£161m). The closing deferred tax asset balance of other temporary differences includes those relating to accruals and provisions
(£92m) and share based remuneration provisions (£41m).
As a result of exemptions on dividends from subsidiaries and capital gains on disposal there are no significant taxable temporary
differences associated with investments in subsidiaries, branches, associates and interests in joint arrangements.
Deferred tax assets in respect of tax losses and other deductible temporary differences have only been recognised to the extent that
it is more likely than not that sufficient taxable profits will be available to allow the asset to be recovered. Accordingly, no deferred tax
asset has been recognised in respect of unused trading losses of approximately £287m (2020: £297m) carried forward at year end. The
deferred tax asset not recognised in respect of these losses is approximately £79m (2020: £81m). Of the unrecognised losses, £100m
(2020: £168m) will expire if not utilised within ten years and £187m (2020: £129m) will expire after more than ten years or have no
expiration date.
In addition, there were state and local tax losses of £73m (2020: £94m) where a deferred tax asset has not been recognised as
these losses are not expected to be utilised. The deferred tax asset not recognised in respect of these losses is approximately £6m
(2020: £6m). Of the unrecognised state and local losses, £27m (2020: £44m) will expire within ten years and £46m (2020: £50m) will
expire after more than ten years.
Deferred tax assets of approximately £5m (2020: £4m) have not been recognised in respect of tax losses and other temporary
differences carried forward of £22m (2020: £23m), which can only be used to offset future capital gains.
10 Earnings per share
Accounting policy
Earnings per share (EPS) is calculated by taking the reported net profit attributable to shareholders and dividing this by the total
weighted average number of shares.
Adjusted earnings per share is calculated by dividing adjusted net profit attributable to RELX PLC shareholders by the total weighted
average number of shares.
RELX Annual report and financial statements 2021 | Financial statements and other information 159
10 Earnings per share (continued)
EARNINGS PER SHARE – FOR THE YEAR
ENDED 31 DECEMBER
Basic earnings per share
Diluted earnings per share
2021
2020
2019
Net profit
attributable
to RELX PLC
shareholders
£m
Weighted
average
number
of shares
(millions)
1,471 1,928.0
1,471 1,939.4
EPS
(pence)
76.3p
75.8p
Net profit
attributable
to RELX PLC
shareholders
£m
Weighted
average
number
of shares
(millions)
1,224 1,926.2
1,224 1,937.8
Net profit
attributable
to RELX PLC
shareholders
£m
Weighted
average
number
of shares
(millions)
1,505 1,943.5
1,505 1,956.2
EPS
(pence)
63.5p
63.2p
EPS
(pence)
77.4p
76.9p
The diluted figures are calculated after taking account of potential additional ordinary shares arising from share options and
conditional shares.
ADJUSTED EARNINGS PER SHARE
2021
2020
2019
Adjusted net
profit
attributable
to RELX PLC
Weighted
average
number
of shares
(millions)
1,689 1,928.0
shareholders
£m
Adjusted net
profit
attributable to
RELX PLC
shareholders
£m
Weighted
average
number of
shares
(millions)
1,543 1,926.2
Adjusted
EPS
(pence)
80.1p
Adjusted net
profit
attributable to
RELX PLC
shareholders
£m
Weighted
average
number of
shares
(millions)
1,808 1,943.5
Adjusted
EPS
(pence)
93.0p
Adjusted
EPS
(pence)
87.6p
Adjusted earnings per share
RECONCILIATION OF ADJUSTED NET PROFIT ATTRIBUTABLE TO RELX PLC SHAREHOLDERS
2021
Net profit attributable to RELX PLC shareholders
Adjustments:
Amortisation of acquired intangible assets
Other deferred tax credits from intangible assets*
Acquisition-related items
Net interest on net defined benefit pension obligation and other
Disposals and other non-operating items
Adjusted net profit attributable to RELX PLC shareholders
2020
Net profit attributable to RELX PLC shareholders
Adjustments:
Amortisation of acquired intangible assets
Other deferred tax credits from intangible assets*
Acquisition-related items
Net interest on net defined benefit pension obligation and other
Disposals and other non-operating items
Exceptional costs in Exhibitions
Adjusted net profit attributable to RELX PLC shareholders
2019
Net profit attributable to RELX PLC shareholders
Adjustments:
Amortisation of acquired intangible assets
Other deferred tax credits from intangible assets*
Acquisition-related items
Net interest on net defined benefit pension obligation and other
Disposals and other non-operating items
Adjusted net profit attributable to RELX PLC shareholders
* Movements on deferred tax liabilities arising on acquired intangible assets that do not qualify for tax amortisation.
Pre tax
adjustment
£m
Tax on
adjustment
£m
294
–
21
9
(55)
22
(61)
(11)
(2)
1
Pre tax
adjustment
£m
Tax on
adjustment
£m
360
–
(12)
11
(130)
183
35
(78)
(6)
(2)
3
(45)
Pre tax
adjustment
£m
Tax on
adjustment
£m
295
–
84
13
(51)
26
(57)
(15)
(3)
11
Total
£m
1,471
316
(61)
10
7
(54)
1,689
Total
£m
1,224
395
(78)
(18)
9
(127)
138
1,543
Total
£m
1,505
321
(57)
69
10
(40)
1,808
RELX Annual report and financial statements 2021 | Notes to the consolidated financial statementsMarket segmentsGovernanceFinancial statements and other informationFinancial reviewCorporate ResponsibilityOverview 160
Notes to the consolidated financial statements
for the year ended 31 December 2021
11 Statement of cash flows
Accounting policy
Cash and cash equivalents comprise cash balances, call deposits and other short-term highly liquid investments and are held in the
statement of financial position at fair value.
RECONCILIATION OF OPERATING PROFIT TO CASH GENERATED FROM OPERATIONS
Operating profit
Share of results of joint ventures
Amortisation of acquired intangible assets
Amortisation of internally developed intangible assets
Depreciation of property, plant and equipment
Depreciation of right-of-use assets
Share based remuneration
Total non-cash items
Increase in inventories and pre-publication costs*
(Increase)/decrease in receivables
(Decrease)/increase in payables
Increase in working capital
Cash generated from operations
* Includes amortisation of pre-publication costs of £60m (2020: £62m, 2019: £55m).
CASH FLOW ON ACQUISITIONS
Purchase of businesses
Deferred payments relating to prior year acquisitions
Total
RECONCILIATION OF NET DEBT
At start of year
Increase/(decrease) in cash and cash equivalents
Decrease/(increase) in short-term bank loans,
overdrafts and commercial paper
Issuance of term debt
Repayment of term debt
Repayment of leases
Change in net debt resulting from cash flows
Borrowings in acquired businesses
Remeasurement and derecognition of leases
Inception of leases
Fair value and other adjustments to debt and
related derivatives
Exchange translation differences
At end of year
Note
12
Cash and
cash
equivalents
£m
88
Related
derivative
financial
instruments
£m
119
Debt
£m
(7,123)
Finance
lease
receivable
£m
18
26
–
–
–
–
26
–
–
–
–
200
–
431
93
724
–
(4)
(25)
–
–
–
–
–
–
–
–
–
–
(1)
113
85
176
(6,167)
(83)
(1)
35
–
–
–
–
(17)
(17)
–
–
1
–
–
2
2021
£m
1,884
(29)
297
295
52
80
45
769
(13)
(103)
(32)
(148)
2,476
2021
£m
(235)
(19)
(254)
2020
£m
1,525
(15)
376
319
60
88
25
868
(18)
149
(245)
(114)
2,264
2020
£m
(864)
(5)
(869)
2019
£m
2,101
(41)
294
249
58
82
32
715
(14)
(116)
79
(51)
2,724
2019
£m
(399)
(24)
(423)
2021
£m
(6,898)
2020
£m
(6,191)
2019
£m
(6,177)
26
(51)
27
200
–
431
76
733
–
(4)
(24)
2
174
(6,017)
436
(2,342)
1,233
90
(634)
(3)
(8)
(24)
(4)
(34)
(6,898)
(98)
(729)
617
86
(97)
(6)
(28)
(60)
(94)
271
(6,191)
Net debt comprises cash and cash equivalents, loan capital, lease liabilities and receivables, promissory notes, bank and other loans,
derivative financial instruments that are used to hedge certain borrowings and adjustments in respect of cash collateral received/paid.
The Group monitors net debt as part of capital and liquidity management.
RELX Annual report and financial statements 2021 | Financial statements and other information 161
12 Acquisitions
Accounting policy
Goodwill, being the excess of the consideration over the net tangible and intangible assets acquired, represents benefits which do
not qualify for recognition as intangible assets, including: the ability of a business to generate higher returns than individual assets;
skilled workforces; and acquisition synergies that are specific to the Group. In addition, goodwill arises on the recognition of
deferred tax liabilities in respect of intangible assets for which amortisation does not qualify for tax deductions.
During the year, a number of acquisitions were made. The net assets of the businesses acquired are incorporated at their fair value to the
Group. Provisional fair values of the consideration given and of the assets and liabilities acquired are summarised below.
Goodwill
Intangible assets
Property, plant and equipment
Non-current assets
Current assets
Current liabilities
Borrowings
Deferred tax
Net assets acquired
Consideration (after taking account of £8m (2020: £29m; 2019: £32m) net cash acquired)
Less: consideration deferred to future years
Less: acquisition date fair value of equity interest
Net cash flow
Fair value
2021
£m
131
156
1
–
4
(16)
–
(27)
249
249
(14)
–
235
Fair value
2020
£m
570
427
3
1
20
(24)
(3)
(90)
904
904
(40)
–
864
Fair value
2019
£m
257
245
1
4
20
(53)
(6)
(44)
424
424
(10)
(15)
399
During 2021, RELX completed several acquisitions for a total of £255m, or £249m adjusted for cash acquired.
The businesses acquired in 2021 contributed £10m to revenue, had no impact on adjusted operating profit, decreased net profit by
£9m (after charging £10m of integration costs and amortisation of acquired intangibles) and contributed £3m to net cash inflow from
operating activities for the part year under the Group’s ownership and before taking account of acquisition financing costs. Had the
businesses been acquired at the beginning of the year, on a pro forma basis the Group revenues, adjusted operating profit and net profit
attributable to RELX PLC shareholders for the year would have been £7,258m, £2,208m and £1,469m respectively, before taking account
of acquisition financing costs.
13 Equity dividends
ORDINARY DIVIDENDS PAID IN THE YEAR
RELX PLC
2021
£m
920
2020
£m
880
2019
£m
842
Ordinary dividends declared and paid in the year ended 31 December 2021, in amounts per ordinary share, comprise: a 2020 final
dividend of 33.4p (2020: 32.1p; 2019: 29.7p) and a 2021 interim dividend of 14.3p (2020: 13.6p; 2019: 13.6p), giving a total of 47.7p (2020: 45.7p;
2019: 43.3p).
The Directors of RELX PLC have proposed a final dividend of 35.5p (2020: 33.4p; 2019: 32.1p), giving a total for the financial year of 49.8p
(2020: 47.0p; 2019: 45.7p). The total cost of funding the proposed final dividend is expected to be £685m, for which no liability has been
recognised at the statement of financial position date.
The Employee Benefit Trust has currently waived the right to receive dividends on RELX PLC shares. This waiver has been applied to
dividends paid in 2021, 2020 and 2019.
RELX Annual report and financial statements 2021 | Notes to the consolidated financial statementsMarket segmentsGovernanceFinancial statements and other informationFinancial reviewCorporate ResponsibilityOverview 162
Notes to the consolidated financial statements
for the year ended 31 December 2021
14 Intangible assets
Accounting policy
On acquisition of a subsidiary or business, the purchase consideration is allocated between the net tangible and intangible assets
other than goodwill on a fair value basis, with any excess purchase consideration representing goodwill. Goodwill is carried at fair
value as at the date of acquisition less impairment charges. Acquired intangible assets are carried at their fair value as at the date of
acquisition less accumulated amortisation. On disposal of a subsidiary or business, the attributable amount of goodwill is included in
the determination of profit or loss recognised in the income statement.
Intangible assets acquired as part of business combinations comprise: market-related assets (e.g. trademarks, imprints, brands);
customer-related assets (e.g. subscription bases, customer lists, customer relationships); editorial content; software and systems
(e.g. application infrastructure, product delivery platforms, in-process research and development); and other intangible assets
mainly comprising contract and rights related assets. Intangible assets, other than journal titles determined to have indefinite lives,
are amortised on a straight-line basis over their estimated useful lives. The estimated useful lives of intangible assets with finite
lives are:
§ Market-related assets – 1 to 40 years
§ Customer-related assets – 1 to 20 years
§ Editorial content – 1 to 40 years
§ Software and systems – 1 to 10 years
§ Other – 3 to 20 years
Journal titles determined to have indefinite lives are not amortised and are subject to impairment review at least annually, including
a review of events and circumstances to ensure that they continue to support an indefinite useful life.
Internally developed intangible assets typically comprise software and systems development where an identifiable asset is created
that is probable to generate future economic benefits and are carried at cost less accumulated amortisation. Internally developed
intangible assets are amortised on a straight line basis over their estimated useful lives of 3 to 15 years. Impairment reviews are
carried out at least annually or where indicators of impairment are identified.
Impairment reviews
Goodwill and acquired intangible assets with an indefinite life are allocated to cash generating units (CGUs) and tested for
impairment test at least annually or when there is an indicator that the asset may be impaired. An impairment loss is recognised in
the income statement in administration and other expenses to the extent the carrying value of goodwill exceeds its recoverable
amount and not subsequently reversed. The recoverable amount is the higher of fair value less costs to sell and value in use. The
carrying amounts of all other intangible assets are reviewed where there are indications of possible impairment.
An impairment review involves a comparison of the carrying value of the asset with estimated values in use based on the latest
management cash flow projections, approved by the Board. Key areas of judgement in estimating the values in use of businesses
are the growth in cash flows over a forecast period of up to five years, the long-term growth rate assumed thereafter and the
discount rate applied to the forecast cash flows. These calculations require the use of estimates in respect of forecast cash flows
and discount rates. Where the asset does not generate cash flows that are independent from other assets, value in use estimates
are made based on the cash flows of the CGU to which the asset belongs.
Critical judgements and key sources of estimation uncertainty
Management judgement is required to identify intangible assets on acquisition. The valuation of acquired intangible assets
represents the estimated economic value in use, using standard valuation methodologies, including as appropriate, discounted
cash flow, relief from royalty and comparable market transactions. Estimates used in determining the future cash flows and
discount rates used may have a material effect on the reported amounts of these intangible assets.
The selection of appropriate amortisation periods for acquired intangible assets requires management to assess the longevity of
the brands and imprints, the strength and stability of customer relationships, the market positions of the acquired assets and the
technological and competitive risks that they face. Certain intangible assets in relation to acquired science and medical publishing
businesses have been determined to have indefinite lives. The longevity of these assets is evidenced by their long-established and
well-regarded journal titles, and their characteristically stable market positions.
Development spend encompasses investment in new products and other initiatives, ranging from the building of online delivery
platforms, to launch costs of new services, to building new infrastructure and applications. Launch costs and other ongoing
operating expenses of new products and services are expensed as incurred. The costs of building product applications, platforms
and infrastructure are capitalised as internally generated intangible assets, where the investment they represent has demonstrable
value and the technical and commercial feasibility is assured. Costs eligible for capitalisation must be incremental, clearly identified
and directly attributable to a particular project. The resulting assets are amortised over their estimated useful lives. Judgement is
required in the assessment of the potential value of a development project, the identification of costs eligible for capitalisation and
RELX Annual report and financial statements 2021 | Financial statements and other information 163
14 Intangible assets (continued)
the selection of appropriate asset lives. Where indicators of impairment are identified, estimates relating to the future cash flows
and discount rates used in calculating the value in use of the intangible asset may have a material effect on the reported amounts of
intangible assets.
The valuation of goodwill is no longer considered to be a key source of estimation uncertainty which could give rise to a risk of
material misstatement given the consistent high level of headroom between the carrying amount of goodwill and recoverable
amount of each CGU and no recent impairments being recorded.
Market
related
£m
Customer
related
£m
Editorial
content
£m
Software
and
technology
£m
Goodwill
6,824
570
–
(6)
(164)
7,224
131
–
(3)
14
7,366
–
–
–
–
–
–
–
–
–
COST
As at 1 January 2020
Acquisitions
Additions
Disposals and other
Exchange translation differences
At 1 January 2021
Acquisitions
Additions
Disposals and other
Exchange translation differences
At 31 December 2021
ACCUMULATED AMORTISATION
As at 1 January 2020
Charge for the year*
Disposals and other
Exchange translation differences
At 1 January 2021
Charge for the year*
Disposals and other
Exchange translation differences
At 31 December 2021
NET BOOK AMOUNT
At 31 December 2020
At 31 December 2021
2,436
21
–
–
(66)
2,391
11
–
(2)
15
2,415
1,236
134
(7)
(40)
1,323
109
(2)
8
1,438
1,564
250
–
(6)
(58)
1,750
78
–
2
10
1,840
993
103
(7)
(35)
1,054
79
(6)
5
1,132
Total
acquired
intangible
assets
£m
Total
internally
developed
intangible
assets
£m
Total
intangible
assets
excluding
goodwill
£m
7,635
427
–
(70)
(168)
7,824
156
–
(30)
15
7,965
5,447
376
(70)
(110)
5,643
297
(30)
2
5,912
3,041
–
318
(90)
(18)
3,251
–
310
(19)
(31)
3,511
1,777
319
(78)
(11)
2,007
295
(19)
(23)
2,260
10,676
427
318
(160)
(186)
11,075
156
310
(49)
(16)
11,476
7,224
695
(148)
(121)
7,650
592
(49)
(21)
8,172
Other
£m
2,434
–
–
(34)
(19)
2,381
5
–
(23)
(13)
2,350
2,370
22
(36)
(18)
2,338
16
(23)
(12)
2,319
43
31
2,181
2,053
1,244
1,251
3,425
3,304
632
–
–
(10)
(8)
614
11
–
(7)
2
620
483
40
(1)
(8)
514
39
1
2
556
100
64
569
156
–
(20)
(17)
688
51
–
–
1
740
365
77
(19)
(9)
414
54
–
(1)
467
274
273
7,224
7,366
1,068
977
696
708
* Includes impairments of acquired intangible assets of £13m (2020: £42m in Legal and £23m in Exhibitions), and an impairment of internally developed intangible
assets of £29m in Exhibitions in 2020 which has been classified as exceptional. Refer to note 2 for further detail on the exceptional costs in Exhibitions in 2020.
The carrying amount of goodwill is shown after cumulative amortisation of £1,144m (2020: £1,151m), which was charged prior to the
adoption of IFRS, and £8m (2020: £9m) of subsequent impairment charges recorded in prior years.
The Legal business has £663m of capitalised development costs associated with platforms and infrastructure.
Included in market and customer-related intangible assets are £112m (2020: £111m) of journal titles relating to Scientific, Technical &
Medical determined to have indefinite lives based on an assessment of their historical longevity and stable market positions.
RELX Annual report and financial statements 2021 | Notes to the consolidated financial statementsMarket segmentsGovernanceFinancial statements and other informationFinancial reviewCorporate ResponsibilityOverview 164
Notes to the consolidated financial statements
for the year ended 31 December 2021
14 Intangible assets (continued)
Impairment review
There were no charges for impairment of goodwill or indefinite lived intangible assets in 2021 (2020: nil).
Goodwill and indefinite lived intangible assets are compiled and assessed among groups of CGUs, which represent the lowest level at
which goodwill is monitored by management. Typically, acquisitions are integrated into existing business areas, and the goodwill arising
is allocated to the groups of CGUs that are expected to benefit from the synergies of the acquisition. As the business areas have become
increasingly integrated and globalised, the current CGU allocation reflects the global leverage of assets, skills, knowledge and
technology platforms, and the monitoring of goodwill by management.
GOODWILL
Risk
Scientific, Technical & Medical
Legal
Exhibitions
Total
The key assumptions used for each group of CGUs are disclosed below:
KEY ASSUMPTIONS
Risk
Scientific, Technical & Medical
Legal
Exhibitions
2021
3,675
1,683
1,406
602
7,366
2020
3,546
1,669
1,395
614
7,224
2021
2020
Pre-tax
discount
rate
9.8%
9.1%
9.9%
11.7%
Nominal
long-term
market
growth rate
3%
3%
2%
3%
Pre-tax
discount
rate
10.6%
9.8%
11.2%
12.6%
Nominal
long-term
market
growth rate
3%
3%
2%
3%
The pre–tax discount rates used are based on the Group’s weighted average cost of capital, adjusted to reflect a risk premium specific to
each business. The Group’s weighted average cost of capital is derived from a risk free rate, a market risk premium, a risk adjustment
(beta) and a cost of debt adjustment. The Group’s weighted average cost of capital was calculated as at the 30 September 2021 when the
impairment review was performed, and there were no indicators of impairment in the intervening period to 31 December 2021. The key
assumptions within the forecast growth in the cash flows over a forecast period of up to five years are revenue growth, operating margin
and cash conversion. Revenue growth and operating profit margin forecasts for each CGU are derived from past results adjusted by
management based on salient current and future considerations. Cash conversion rates for each CGU are based on historical cash
conversion rates. Nominal long–term market growth rates, which are applied after the forecast period of up to five years, do not exceed
the long–term average growth prospects for the sectors and territories in which the businesses operate.
A sensitivity analysis has been performed based on changes in key assumptions considered to be reasonably possible by management:
an increase in the discount rate of 0.5%, a decrease in the compound annual growth rate for cash flow in the five-year forecast period of
2.0%, and a decrease in the nominal long-term market growth rates of 0.5%. These sensitivity analyses show that no impairment
charges would result from these scenarios.
RELX Annual report and financial statements 2021 | Financial statements and other information 165
15 Investments
Accounting policy
Investments, other than investments in joint arrangements and associates, are stated in the statement of financial position at
fair value. Changes in the fair value of investments held as part of the venture capital portfolio are reported in disposals and other
non-operating items in the income statement. All items recognised in the income statement relating to investments, other than
investments in joint arrangements and associates, are reported as disposals and other non-operating items.
Venture capital investments and equity investments represent interests in listed and unlisted securities. The fair value of listed
securities is based on quoted prices in active markets. The fair value of unlisted securities is based on management’s estimate
of fair value based on standard valuation techniques, including market comparisons and discounts of future cash flows, having
regard to maximising the use of observable inputs and adjusting for risk. Advice from valuation experts is used as appropriate.
All joint arrangements are classified as joint ventures because the Group shares joint control and has rights to the net assets of the
arrangements. Investments in joint ventures and associates are accounted for under the equity method and stated in the statement
of financial position at cost as adjusted for post-acquisition changes in the Group’s share of net assets, less any impairment in value.
Investments in joint ventures
Venture capital investments
Total
2021
£m
105
107
212
2020
£m
103
259
362
The value of venture capital investments and equity investments has been determined by reference to quoted prices in active markets,
other observable market inputs or, when these are not available, by reference to inputs we believe would reflect the assumptions
market participants would use.
An analysis of changes in the carrying value of investments in joint ventures is set out below:
At start of year
Share of results of joint ventures
Dividends received from joint ventures
Disposals
Exchange translation differences
At end of year
Summarised aggregate information in respect of the Group’s share of joint ventures is set out below:
Revenue
Net profit for the year
Total assets
Total liabilities
Net assets
Goodwill
Total
2021
£m
103
29
(20)
(4)
(3)
105
RELX’s share
2021
£m
78
29
136
(70)
66
39
105
2020
£m
118
15
(31)
–
1
103
2020
£m
60
15
84
(45)
39
64
103
The Group’s consolidated other comprehensive income includes no income or losses relating to joint ventures in either period.
RELX Annual report and financial statements 2021 | Notes to the consolidated financial statementsMarket segmentsGovernanceFinancial statements and other informationFinancial reviewCorporate ResponsibilityOverview 166
Notes to the consolidated financial statements
for the year ended 31 December 2021
16 Property, plant and equipment
Accounting policy
Property, plant and equipment are stated in the statement of financial position at cost less accumulated depreciation. No depreciation
is provided on freehold land. Freehold buildings and long leaseholds are depreciated over their estimated useful lives up to a
maximum of 50 years. Short leases are written off over the duration of the lease. Depreciation is provided on other assets on a
straight-line basis over their estimated useful lives as follows:
– land and buildings: land – not depreciated; leasehold improvements – shorter of life of lease and 10 years
– fixtures and equipment: plant – 3 to 20 years; office furniture, fixtures and fittings – 5 to 10 years; computer systems,
communication networks and equipment – 3 to 7 years
Cost
At start of year
Acquisitions
Capital expenditure
Disposals
Exchange translation differences
At end of year
Accumulated depreciation
At start of year
Charge for the year
Disposals
Exchange translation differences
At end of year
2021
Land and
buildings
£m
Fixtures and
equipment
£m
206
–
5
(43)
(1)
167
143
6
(37)
(1)
111
527
1
23
(32)
(3)
516
428
46
(31)
(2)
441
Total
£m
733
1
28
(75)
(4)
683
571
52
(68)
(3)
552
Net book amount
56
75
131
No depreciation is provided on freehold land of £10m (2020: £13m).
Amounts relating to right-of-use assets under IFRS 16 can be found in note 22.
2020
Land and
buildings
£m
Fixtures and
equipment
£m
602
3
39
(111)
(6)
527
492
51
(111)
(4)
428
213
–
4
(7)
(4)
206
143
9
(7)
(2)
143
63
Total
£m
815
3
43
(118)
(10)
733
635
60
(118)
(6)
571
99
162
RELX Annual report and financial statements 2021 | Financial statements and other information 167
17 Financial instruments
Accounting policy
Financial instruments comprise investments (other than investments in joint ventures or associates), trade receivables, cash
and cash equivalents, payables and accruals, borrowings and derivative financial instruments.
Investments (other than investments in joint ventures and associates) are described in note 15. The fair value of such investments
is based on standard valuation techniques, including market comparisons and discounts of future cash flows, having regard to
maximising the use of observable inputs and adjusting for risk. (These investments are typically classified as either Level 2 or 3
in the IFRS 13 fair value hierarchy).
Trade receivables are carried in the statement of financial position at invoiced value less allowance for expected credit losses.
Expected credit losses are based on the ageing of trade receivables, experience and circumstance. Borrowings and payables are
recorded initially at fair value and subsequently carried at amortised cost (other than fixed rate borrowings in designated hedging
relationships for which the carrying amount of the hedged portion of the borrowings is subsequently adjusted for the gain or loss
attributable to the hedged risk).
Derivative financial instruments are used to hedge interest rate and foreign exchange risks. Where an effective hedge is in place
against changes in the fair value of fixed rate borrowings, the hedged borrowings are adjusted for changes in fair value attributable
to the risk being hedged with a corresponding income or expense included in the income statement within finance costs. The
offsetting gains or losses from remeasuring the fair value of the related derivatives are also recognised in the income statement
within finance costs. When the related derivative expires, is sold or terminated, or no longer qualifies for hedge accounting, the
cumulative change in fair value of the hedged borrowing is amortised in the income statement over the period to maturity of the
borrowing using the effective interest method.
Changes in the fair value of derivative financial instruments that are designated and effective as hedges of future cash flows are
recognised (net of tax) in other comprehensive income and accumulated in the hedge reserve. The fair value amounts relating to
foreign currency basis spreads are recorded in a separate component of equity in the cost of hedging reserve. If a hedged firm
commitment or forecasted transaction results in the recognition of a non-financial asset or liability, then, at the time that the asset or
liability is recognised, the associated gains or losses on the derivative that had previously been recognised in other comprehensive
income are included in the initial measurement of the asset or liability. For hedges that do not result in the recognition of an asset or
a liability, amounts deferred in the hedge reserve are recognised in the income statement in the same period in which the hedged
item affects net profit or loss. Any ineffective portion of hedges is recognised immediately in the income statement.
Cash flow hedge accounting is discontinued when a hedging instrument expires or is sold, terminated or exercised, or no
longer qualifies for hedge accounting. At that time, any cumulative gain or loss on the hedging instrument recognised in other
comprehensive income is either retained in the hedge reserve until the firm commitment or forecasted transaction occurs, or,
where a hedged transaction is no longer expected to occur, is immediately credited or expensed in the income statement.
Derivative financial instruments that are not designated as hedging instruments are recorded in the statement of financial position
at fair value, with changes in fair value recognised in the income statement.
The fair values of derivative financial instruments represent the replacement costs calculated using observable market rates of
interest and exchange. The fair value of long-term borrowings is calculated by discounting expected future cash flows at observable
market rates. (These instruments are accordingly classified as Level 2 in the IFRS 13 fair value hierarchy.)
The main financial risks faced by the Group are liquidity risk, market risk – comprising interest rate risk and foreign exchange risk –
and credit risk. Financial instruments are used to finance the Group’s businesses and to manage interest rate and foreign exchange
risks. The Group’s businesses do not enter into speculative derivative transactions. Details of financial instruments subject to liquidity,
market and credit risks are described below.
Liquidity risk
The Group maintains a range of borrowing facilities and debt programmes to fund its requirements at competitive rates.
The balance of long-term debt, short-term debt and committed bank facilities is managed to provide security of funding, taking into
account the cash generation cycle of the business and the uncertain size and timing of acquisition spend. To accommodate the significant
free cash flow generated by the Group and to capitalise on an inexpensive source of funding, a meaningful portion of the overall debt
portfolio is typically kept short term as long as there exists acceptable liquidity in the commercial paper markets and sufficient capacity
under committed credit lines. The Group’s treasury policies ensure adequate liquidity by requiring that (a) no more than $2bn of term
debt matures in any 12-month period, (b) the sum of term debt maturing over the ensuing 12 months plus short-term borrowings is less
than the sum of available cash plus committed facilities and (c) minimum levels of borrowing with maturities over three and five years
are maintained.
The treasury policies ensure debt efficiency by (a) targeting certain levels of short-term borrowings across a given year, (b) maintaining
a weighted average maturity of the gross debt portfolio of approximately five years and (c) minimising surplus cash balances. From
time to time, based on cash flow and market conditions, the Group may redeem term debt early or repurchase outstanding debt in the
open market.
RELX Annual report and financial statements 2021 | Notes to the consolidated financial statementsMarket segmentsGovernanceFinancial statements and other informationFinancial reviewCorporate ResponsibilityOverview 168
Notes to the consolidated financial statements
for the year ended 31 December 2021
17 Financial instruments (continued)
Debt is issued to meet the funding requirements of various jurisdictions and in the currencies that are needed. It is recognised that debt
can act as a natural translation hedge of earnings, net assets and net cash flow in currencies other than the reporting currency. For this
reason, the majority of the Group’s net debt is denominated in US dollars and euros, reflecting the Group’s largest geographical markets.
There were no changes to the Group’s long-term approach to capital and liquidity management during the year.
The remaining contractual maturities for borrowings and derivative financial instruments are shown in the table below. The table shows
undiscounted principal and interest cash flows and includes contractual gross cash flows to be exchanged as part of cross-currency
interest rate swaps and forward foreign exchange contracts where there is a legal right of set-off.
AT 31 DECEMBER 2021
Contractual cash flow
Borrowings
Fixed rate borrowings
Floating rate borrowings
Lease liabilities
Derivative financial liabilities
Interest rate derivatives
Cross-currency interest rate swaps
Forward foreign exchange contracts
Derivative financial assets
Interest rate derivatives
Cross-currency interest rate swaps
Forward foreign exchange contracts
Total
AT 31 DECEMBER 2020
Borrowings
Fixed rate borrowings
Floating rate borrowings
Lease liabilities
Derivative financial liabilities
Cross-currency interest rate swaps
Forward foreign exchange contracts
Derivative financial assets
Interest rate derivatives
Cross-currency interest rate swaps
Forward foreign exchange contracts
Total
Carrying
amount
£m
(5,828)
(131)
(208)
Within
1 year
£m
(156)
(131)
(75)
(5)
(2)
(7)
–
(32)
(1,741)
19
16
48
(6,098)
Carrying
amount
£m
(6,541)
(307)
(275)
22
29
1,770
(314)
Within
1 year
£m
(576)
(307)
(103)
(3)
(9)
(32)
(1,416)
49
66
42
(6,978)
20
30
1,425
(959)
1-2 years
£m
2-3 years
£m
3-4 years
£m
4-5 years
£m
More than
5 years
£m
Total
£m
(741)
–
(63)
–
(34)
(382)
10
26
398
(786)
(1,106)
–
(43)
(1)
(14)
(207)
4
7
210
(1,150)
(704)
–
(25)
(2)
(501)
(27)
–
511
28
(720)
(709)
–
(4)
(3,126)
–
(31)
(6,542)
(131)
(241)
(2)
–
–
(7)
–
–
(12)
(581)
(2,357)
–
–
–
(715)
–
–
–
(3,164)
36
573
2,406
(6,849)
Contractual cash flow
1-2 years
£m
2-3 years
£m
3-4 years
£m
4-5 years
£m
(157)
–
(72)
(8)
(356)
18
7
370
(198)
(737)
–
(57)
(29)
(214)
13
26
223
(775)
(1,173)
–
(41)
(9)
(24)
6
7
25
(1,209)
(737)
–
(17)
(495)
–
1
544
–
(704)
More than
5 years
£m
(3,963)
–
(34)
Total
£m
(7,343)
(307)
(324)
–
–
(573)
(2,010)
1
–
–
(3,996)
59
614
2,043
(7,841)
The carrying amount of derivative financial liabilities comprises £5m (2020: nil) in relation to fair value hedges, £7m (2020: £6m) in
relation to cash flow hedges and £2m (2020: £6m) not designated as hedging instruments. The carrying amount of derivative financial
assets comprises £35m (2020: £114m) in relation to fair value hedges, £36m (2020: £37m) in relation to cash flow hedges and £12m
(2020: £6m) not designated as hedging instruments.
RELX Annual report and financial statements 2021 | Financial statements and other information 169
17 Financial instruments (continued)
The Group has ample liquidity and access to debt capital markets, providing the ability to repay or refinance borrowings as they mature
and to fund ongoing requirements. At 31 December 2021, the Group had access to a $3.0bn committed bank facility, consisting of various
tranches with maturities through to July 2024, which was undrawn. This facility backs up short-term borrowings. All borrowings that
mature within the next two years can be covered by the facility and by utilising available cash resources.
The committed bank facility is subject to a financial covenant typical to the Group’s size and financial strength. The Group had significant
headroom within this covenant for the year ended 31 December 2021. There are no financial covenants in any outstanding public bonds.
Market risk
The Group’s primary market risks are interest rate fluctuations and exchange rate movements. Derivatives are used to manage the
risks associated with interest rate and exchange rate movements and the Group does not enter into speculative derivatives. Where the
impact of derivatives on the income statement and the statement of financial position could be significant, hedge accounting is applied
(subject to satisfying the required criteria) as described in ‘Hedge accounting’ below. Derivatives used by the Group for hedging a
particular risk are not specialised and are generally available from numerous sources. The Group is also exposed to changes in the
market value of its venture capital investments as described in note 15. The impact of market risks on net post-employment benefit
obligations and taxation is excluded from the following market risk sensitivity analysis.
Interest rate exposure management
The Group’s interest rate exposure management policy aims to minimise interest costs with an acceptable level of year-on-year
volatility. To achieve this, the Group uses fixed rate term debt and interest rate swaps to give a target mix of fixed rate and floating rate
borrowings. Interest rate derivatives are used only to hedge an underlying risk and no net market positions are held.
At 31 December 2021, 62% of gross bank and bond borrowings were at fixed rate. A 100 basis point reduction in interest rates would
result in an estimated decrease in net finance costs of £21m (2020: £23m), based on the composition of financial instruments including
cash, cash equivalents, bank loans and commercial paper borrowings at 31 December 2021. A 100 basis point rise in interest rates would
result in an estimated increase in net finance costs of £21m (2020: £23m).
The impact on net equity of a theoretical change in interest rates as at 31 December 2021 is restricted to the change in carrying value
of floating rate to fixed rate interest rate derivatives in a designated cash flow hedge relationship and undesignated interest rate derivatives.
A 100 basis point reduction in interest rates would result in an estimated decrease in net equity of nil (2020: £1m) and a 100 basis point
increase in interest rates would increase net equity by an estimated amount of nil (2020: £1m). The impact of a change in interest rates on
the carrying value of fixed rate borrowings in a designated fair value hedge relationship would be offset by the change in carrying value of
the related interest rate derivative. Fixed rate borrowings not in a designated hedging relationship are carried at amortised cost.
The Group has assessed the impact of the Interbank Offered Rates (IBOR) reform and concluded that there will be no significant impact
on the financial statements. The Group is primarily exposed to IBOR through its derivatives which swap fixed rate bond issuances to a
floating rate of interest and which are designated in fair value hedge relationships. The table on page 170 details these interest rate
derivatives which swap £1,713m of bonds with weighted average maturity of 4.5 years to a floating rate of interest referencing US dollar
LIBOR (3 months) and swap £421m of bonds with weighted average maturity of 2.2 years to a floating rate of interest referencing Euribor
(3 months). The Group has adopted the ISDA fallback protocol in respect of these derivatives and the fair value hedge designations are
expected to remain highly effective throughout the transition to alternative risk free rates.
Foreign currency exposure management
Translation exposures arise on the earnings and net assets of individual businesses whose operational currencies are other than sterling.
Some of these exposures are offset by denominating borrowings in US dollars, euros and other currencies. Currency exposures on
transactions denominated in a foreign currency are generally hedged using forward contracts. In addition, recurring transactions and
future investment exposures may be hedged, in advance of becoming contractual. The precise policy differs according to the specific
circumstances of the individual businesses. Highly predictable future cash flows may be covered for transactions expected to occur during
the next 24 months (50 months for the Scientific, Technical & Medical subscription businesses) within limits defined according to the period
before the transaction is expected to become contractual. Cover takes the form of foreign exchange forward contracts. Further information
is provided in ‘Cash flow hedges’ below.
A theoretical weakening of all currencies by 10% against sterling at 31 December 2021 would decrease the carrying value of net
assets, excluding net borrowings, by £781m (2020: £803m). This would be offset to a degree by a decrease in net borrowings of £677m
(2020: £713m). A strengthening of all currencies by 10% against sterling at 31 December 2021 would increase the carrying value of net
assets, excluding net borrowings, by £781m (2020: £803m) and increase net borrowings by £677m (2020: £713m).
A retranslation of the Group’s net profit for the year, assuming a 10% weakening of all foreign currencies against sterling but excluding
transactional exposures, would reduce net profit by £112m (2020: £95m). A 10% strengthening of all foreign currencies against sterling
on this basis would increase net profit for the year by £112m (2020: £95m).
RELX Annual report and financial statements 2021 | Notes to the consolidated financial statementsMarket segmentsGovernanceFinancial statements and other informationFinancial reviewCorporate ResponsibilityOverview 170
Notes to the consolidated financial statements
for the year ended 31 December 2021
17 Financial instruments (continued)
Credit risk
The Group seeks to manage interest rate risk and limit foreign exchange risks described above by the use of financial instruments
and as a result has a credit risk from the potential non-performance by the counterparties to these financial instruments, which are
unsecured. The amount of this credit risk is normally restricted to the amounts of any hedge gain and not the principal amount being
hedged. The Group also has a credit exposure to counterparties for the full principal amount of cash and cash equivalents. Credit risks
are controlled by monitoring the credit quality of these counterparties, principally licensed commercial banks and investment banks
with strong long-term credit ratings, and the amounts outstanding with each of them.
The Group has treasury policies in place which do not allow concentrations of risk with individual counterparties and do not allow
significant treasury exposures with counterparties which are rated lower than A-/A3 by Standard & Poor’s, Moody’s and Fitch.
At 31 December 2021, cash and cash equivalents totalled £113m (2020: £88m), of which 89% (2020: 77%) was held with banks rated A-/A3
or better.
The Group also has credit risk with respect to trade receivables due from its customers, which include national and state governments,
academic institutions and large and small enterprises including law firms, book stores and wholesalers. The concentration of credit
risk from trade receivables is limited due to the large and broad customer base. Trade receivable exposures are managed locally in the
business areas where they arise. Where appropriate, business areas seek to minimise this exposure by taking payment in advance and
through management of credit terms. Expected credit losses are based on management’s assessment of the risk taking into account
the ageing profile, experience and circumstance. The maximum exposure to credit risk is represented by the carrying amount of each
financial asset, including derivative financial instruments, recorded in the statement of financial position.
Included within trade receivables are the following amounts which are past due, after considering loss allowance: past due up to one
month £156m (2020: £170m); past due two to three months £96m (2020: £83m); past due four to six months £35m (2020: £34m); and past
due greater than six months £18m (2020: £46m).
Hedge accounting
The hedging relationships that are designated under IFRS 9 – Financial Instruments are described below.
Fair value hedges
The Group has entered into interest rate swaps and cross-currency interest rate swaps to hedge the exposure to changes in the fair
value of fixed rate borrowings due to interest rate and foreign currency movements which could affect the income statement. The table
below details the designated fair value hedge relationships that were in place at 31 December 2021, swapping fixed rate term debt issues
denominated in US dollars (USD) and euros to floating rate USD and euro debt respectively for the whole or part of their term, together
with the related fixed and floating rates.
FAIR VALUE HEDGE RELATIONSHIPS
31 December
2021
Principal
amount
£m
31 December
2020
Principal
amount
£m
Fixed rate
Floating rate
€500m bond and €500m interest rate swaps maturing 2021
–
(448)
0.4% Euribor+0.3%
$700m bond and $700m interest rate swaps maturing 2023
(517)
(513)
3.5% USD LIBOR+0.8%
€500m bond and €500m interest rate swaps maturing 2024
(421)
(448)
1.0% Euribor+0.7%
€600m bond and €600m/$669.3m cross-currency interest rate swaps maturing 2025
(494)
(490)
1.3% USD LIBOR+1.3%
$200m bond and $200m interest rate swaps maturing 2027
(148)
(146)
7.2% USD LIBOR+5.8%
$750m bond and $750m interest rate swaps maturing 2030
(554)
(2,134)
–
(2,045)
3.0% USD LIBOR+1.6%
RELX Annual report and financial statements 2021 | Financial statements and other information 171
17 Financial instruments (continued)
The gains and losses on the borrowings and related derivatives designated as fair value hedges, which are included in the income
statement as part of finance costs, together with the total carrying values of the borrowings and related derivatives included in the
statement of financial position, for the three years ended 31 December 2021, 2020 and 2019 were as follows:
GAINS/(LOSSES) ON BORROWINGS AND RELATED DERIVATIVES
AND CARRYING VALUES
USD debt
Related interest rate swaps
EUR debt
Related interest rate swaps
Total relating to USD and EUR debt
Total related interest rate swaps
Net gain on borrowings and related derivatives/total carrying value
GAINS/(LOSSES) ON BORROWINGS AND RELATED DERIVATIVES
AND CARRYING VALUES
USD debt
Related interest rate swaps
EUR debt
Related interest rate swaps
Total relating to USD and EUR debt
Total related interest rate swaps
Net gain on borrowings and related derivatives/total carrying value
GAINS/(LOSSES) ON BORROWINGS AND RELATED DERIVATIVES
AND CARRYING VALUES
USD debt
Related interest rate swaps
EUR debt
Related interest rate swaps
Total relating to USD and EUR debt
Total related interest rate swaps
Net (loss)/gain on borrowings and related derivatives/total carrying
1 January
2021
£m
(36)
36
–
(83)
83
–
(119)
119
–
1 January
2020
£m
(13)
13
–
(39)
39
–
(52)
52
–
1 January
2019
£m
13
(14)
(1)
(39)
39
–
(26)
25
Fair value
movement
gain/(loss)
£m
35
(28)
7
55
(55)
–
90
(83)
7
Fair value
movement
gain/(loss)
£m
(25)
25
–
(47)
47
–
(72)
72
–
Fair value
movement
gain/(loss)
£m
(26)
27
1
(2)
2
–
(28)
29
Exchange
gain/(loss)
£m
–
–
–
1
(1)
–
1
(1)
–
31 December
2021
£m
(1)
8
7
(27)
27
–
(28)
35
7
Exchange
gain/(loss)
£m
2
(2)
–
3
(3)
–
5
(5)
–
31 December
2020
£m
(36)
36
–
(83)
83
–
(119)
119
–
Exchange
gain/(loss)
£m
–
–
–
2
(2)
–
2
(2)
31 December
2019
£m
(13)
13
–
(39)
39
–
(52)
52
Carrying
values
£m
(1,221)
8
(1,213)
(940)
27
(913)
(2,161)
35
(2,126)
Carrying
values
£m
(701)
36
(665)
(1,467)
83
(1,384)
(2,168)
119
(2,049)
Carrying
values
£m
(699)
13
(686)
(1,853)
39
(1,814)
(2,552)
52
value
(1)
1
–
–
(2,500)
All fair value hedges were highly effective throughout the three years ended 31 December 2021.
RELX Annual report and financial statements 2021 | Notes to the consolidated financial statementsMarket segmentsGovernanceFinancial statements and other informationFinancial reviewCorporate ResponsibilityOverview 172
Notes to the consolidated financial statements
for the year ended 31 December 2021
17 Financial instruments (continued)
Gross borrowings as at 31 December 2021 included £12m (2020: £15m) in relation to fair value adjustments to borrowings previously
designated in a fair value hedge relationship which were de-designated in 2008. The related derivatives were closed out on de-designation
with a cash inflow of £62m. £3m (2020: £3m) of these fair value adjustments were amortised in the year as a reduction to finance costs.
Cash flow hedges
As part of the Group’s interest rate exposure management, it has entered into certain cross-currency interest rate derivatives,
individual components of which have been accounted for as cash flow hedges (with the remaining components accounted for as fair
value hedges, as described above). These comprised interest rate derivatives which swapped a fixed rate €600m bond, issued in May
2015 and maturing in May 2025, to floating rate USD debt for the whole of its term. The component relating to the swap of the euro credit
margin to USD is being accounted for as a cash flow hedge under IFRS 9, with the amount associated with foreign currency basis spreads
recorded in the cost of hedging reserve.
As part of the Group’s foreign currency exposure management, it has entered into forward foreign exchange contracts which fix the
exchange rate on a portion of future foreign currency subscription revenues forecast by the businesses for up to 50 months. These have
been accounted for as cash flow hedges under IFRS 9 of the forecast foreign currency revenues, with gains and losses on the forward
contracts deferred in the hedge reserve until the related revenue is recognised, at which time the accumulated gains and losses are
reclassified to the income statement.
Movements in the hedge reserve and the cost of hedging reserve in 2020 and 2021, including gains and losses on cash flow hedging
instruments, were as follows:
Hedge reserve at 31 December 2019: (losses) /gains deferred
Gains/(losses) arising in 2020
Amounts recognised in income statement
Hedge reserve at 31 December 2020: gains/(losses) deferred
(Losses)/gains arising in 2021
Amounts recognised in income statement
Hedge reserve at 31 December 2021: gains/(losses) deferred
Interest rate
hedge reserve
£m
–
4
–
4
(3)
–
1
Cost of
hedging
reserve
£m
(7)
(1)
–
(8)
2
–
(6)
Foreign
currency
hedge reserve
£m
14
(9)
22
27
11
(9)
29
Total
£m
7
(6)
22
23
10
(9)
24
All cash flow hedges were highly effective throughout the two years ended 31 December 2021.
A deferred tax debit of £5m (2020: £4m) in respect of the above gains and losses at 31 December 2021 was also deferred in the
hedge reserve.
Of the amounts recognised in the income statement in the year, gains of £9m (2020: losses of £18m) were recognised in revenue, and
losses of nil (2020: £4m) were recognised in finance costs. A tax debit of £2m (2020: credit of £5m) was recognised in relation to these items.
The deferred gains and losses on foreign currency cash flow hedges at 31 December 2021 are currently expected to be recognised in
the income statement in future years as shown in the table below, together with the principal amount of hedges relating to each year
and their total carrying values included within derivative assets and liabilities in the statement of financial position:
2022
2023
2024
2025
Total
Foreign
currency
hedge reserve
£m
16
13
–
–
29
Principal
amount of
hedges
£m
442
384
210
31
1,067
Carrying
values
£m
23
13
–
–
36
The cash flows for these hedges are expected to occur in line with the recognition of the gains and losses in the income statement, or in
the preceding year. These cash flows are included in the table on page 168.
RELX Annual report and financial statements 2021 | Financial statements and other information 173
18 Inventories and pre-publication costs
Accounting policy
Inventories and pre-publication costs are stated at the lower of cost, including appropriate attributable overhead, and estimated net
realisable value. Such costs typically comprise direct internal labour costs and externally commissioned editorial and other fees.
Pre-publication costs, representing costs incurred in the origination of content prior to publication, are expensed systematically
reflecting the expected sales profile over the estimated economic lives of the related products, generally up to five years.
Annual reviews are carried out to assess the recoverability of carrying amounts.
Raw materials
Pre-publication costs
Finished goods
Total
2021
£m
2
218
33
253
2020
£m
2
204
34
240
During the year, pre-publication costs of £73m (2020: £80m) were capitalised. The related amortisation charge was £60m (2020: £62m).
19 Trade and other receivables
Accounting policy
Trade receivables are stated net of a loss allowance for expected credit losses.
Trade receivables
Loss allowance
Prepayments and accrued income
Current tax receivable
Net finance lease receivable
Total
Trade receivables are predominantly non-interest bearing and their carrying amounts approximate to their fair value.
The movements in the loss allowance during the year were as follows:
At start of year
Charge for the year
Trade receivables written off
Exchange translation differences
At end of year
2021
£m
1,738
(106)
1,632
316
10
2
1,960
2021
£m
99
17
(8)
(2)
106
2020
£m
1,757
(99)
1,658
207
44
18
1,927
2020
£m
88
19
(8)
–
99
RELX Annual report and financial statements 2021 | Notes to the consolidated financial statementsMarket segmentsGovernanceFinancial statements and other informationFinancial reviewCorporate ResponsibilityOverview 174
Notes to the consolidated financial statements
for the year ended 31 December 2021
20 Trade and other payables
Accounting policy
Deferred income is recognised when either a customer has paid consideration, or RELX has an unconditional right to an amount
of consideration, in advance of the goods and services being delivered.
Trade payables
Accruals
Social security and other taxes
Other payables
Deferred income
Total
2021
£m
109
718
141
351
1,956
3,275
2020
£m
154
634
174
352
1,946
3,260
Trade and other payables are predominantly non-interest bearing and their carrying amounts approximate to their fair value.
Materially all of the opening deferred income balance has been recognised in the reporting period.
21 Debt
Accounting policy
Borrowings are recorded initially at fair value and subsequently carried at amortised cost, other than fixed rate borrowings in
designated hedging relationships for which the carrying amount of the hedged portion of the borrowings is subsequently adjusted
for the gain or loss attributable to the hedged risk. When the related derivative in such a hedging relationship expires, is sold
or terminated, or no longer qualifies for hedge accounting, the cumulative change in fair value of the hedged borrowing is
amortised in the income statement over the period to maturity of the borrowing using the effective interest method.
Financial liabilities measured at amortised cost:
Short-term bank loans, overdrafts and commercial paper
Term debt
Lease liabilities
Term debt in fair value hedging relationships
Term debt previously in fair value hedging relationships
Total
2021
Falling due
within
1 year
£m
Falling due
in more than
1 year
£m
131
32
69
–
–
232
–
3,410
139
2,161
225
5,935
2020
Falling due
within
1 year
£m
Falling due in
more than
1 year
£m
307
–
92
448
–
847
–
4,147
183
1,721
225
6,276
Total
£m
131
3,442
208
2,161
225
6,167
Total
£m
307
4,147
275
2,169
225
7,123
The total fair value of financial liabilities measured at amortised cost (excluding lease liabilities) is £3,746m (2020: £4,843m). The total
fair value of term debt in fair value hedging relationships is £2,268m (2020: £2,235m). The total fair value of term debt previously in fair
value hedging relationships is £255m (2020: £270m).
RELX PLC has given guarantees in respect of certain long-term and short-term borrowings issued by subsidiaries. Included within
term debt above are debt securities issued by RELX Capital Inc., a 100% indirectly owned finance subsidiary of RELX PLC, which have
been registered with the US Securities and Exchange Commission. RELX PLC has fully and unconditionally guaranteed these securities,
which are not guaranteed by any other subsidiary of RELX PLC.
RELX Annual report and financial statements 2021 | Financial statements and other information 175
21 Debt (continued)
Analysis by year of repayment
Within 1 year
Within 1 to 2 years
Within 2 to 3 years
Within 3 to 4 years
Within 4 to 5 years
After 5 years
After 1 year
Total
2021
2020
Short-term
bank loans,
overdrafts
and
commercial
paper
£m
131
–
–
–
–
–
–
131
Term debt
£m
32
641
1,012
628
626
2,889
5,796
5,828
Lease
liabilities
£m
69
40
37
29
17
16
139
208
Total
£m
232
681
1,049
657
643
2,905
5,935
6,167
Short-term
bank loans,
overdrafts
and
commercial
paper
£m
307
–
–
–
–
–
–
307
Term debt
£m
448
32
651
1,082
673
3,655
6,093
6,541
Lease
liabilities
£m
92
47
44
37
28
27
183
275
Total
£m
847
79
695
1,119
701
3,682
6,276
7,123
Short-term bank loans, overdrafts and commercial paper were backed up at 31 December 2021 by a $3.0bn (£2.2bn) committed bank
facility, consisting of tranches of $1,263m (£936m) maturing in 2023 and $1,706m (£1,264m) maturing in 2024. The committed bank
facility was undrawn.
Analysis by currency
US dollar
Pound sterling
Euro
Other currencies
Total
2021
2020
Short-term
bank loans,
overdrafts
and
commercial
paper
£m
68
–
15
48
131
Term
debt
£m
2,691
–
3,137
–
5,828
Lease
liabilities
£m
79
51
47
31
208
Total
£m
2,838
51
3,199
79
6,167
Short-term
bank loans,
overdrafts
and
commercial
paper
£m
228
9
20
50
307
Term
debt
£m
2,751
–
3,790
–
6,541
Lease
liabilities
£m
120
60
61
34
275
Total
£m
3,099
69
3,871
84
7,123
Included in the US dollar amounts for term debt above is £515m (2020: £560m) of debt denominated in euros (€600m) (2020: €600m)
that was swapped into US dollars on issuance and against which there are related derivative financial instruments, which, as at
31 December 2021, had a fair value of £21m (2020: £70m).
RELX Annual report and financial statements 2021 | Notes to the consolidated financial statementsMarket segmentsGovernanceFinancial statements and other informationFinancial reviewCorporate ResponsibilityOverview 176
Notes to the consolidated financial statements
for the year ended 31 December 2021
22 Lease arrangements
Accounting policy
All leases where RELX is the lessee (with the exception of short-term and low-value leases) are recognised in the statement of
financial position. A lease liability is recognised based on the present value of the future lease payments, and a corresponding
right-of-use asset is recognised. The right-of-use asset is depreciated over the shorter of the lease term or the useful life of
the asset. Lease payments are apportioned between finance charges and a reduction of the lease liability.
Low-value items and short-term leases with a term of 12 months or less are not required to be recognised on the balance
sheet and payments made in relation to these leases are recognised on a straight-line basis in the income statement.
The leases held by the Group can be split into two categories: property and non-property. The Group leases various properties,
principally offices, which have varying terms and renewal rights that are typical to the territory in which they are located.
Non-property includes all other leases, such as cars and printers.
Right-of-use assets
At start of year
Additions
Acquisitions
Remeasurement
Disposals
Depreciation
Impairment*
Exchange translation differences
At end of year
*2020 includes an £11m impairment which was classified as exceptional. Refer to note 2 for further detail.
Lease liability
Current
Property
Non-property
Non-current
Property
Non-property
Total
2021
£m
216
25
–
9
(5)
(66)
(14)
(4)
161
2021
£m
(67)
(2)
(136)
(3)
(208)
2020
£m
264
25
1
12
(1)
(77)
(11)
3
216
2020
£m
(88)
(4)
(178)
(5)
(275)
Interest expense on the lease liabilities recognised within finance costs was £8m (2020: £12m; 2019: £15m).
As at 31 December 2021, RELX was committed to leases with future cash outflows totalling £5m (31 December 2020: £9m) which had not
yet commenced and as such are not accounted for as a liability as at 31 December 2021. A liability and corresponding right-of-use asset
will be recognised for these leases at the lease commencement date.
RELX subleases vacant space available within its leased properties. IFRS 16 specifies conditions whereby a sublease is classed as
a finance lease for the sub-lessor. The finance lease receivable balance held is as follows:
Net finance lease receivable
Short-term and low-value lease expenses have been included in note 3.
Interest income recognised in relation to finance lease receivables is disclosed in note 7.
2021
£m
2
2020
£m
18
RELX Annual report and financial statements 2021 | Financial statements and other information 177
23 Share capital and shares held in treasury
Accounting policy
Shares of RELX PLC that are repurchased and not cancelled are classified as shares held in treasury. The consideration paid,
including directly attributable costs, is recognised as a deduction from equity. Shares of RELX PLC that are purchased by the
Employee Benefit Trust are also classified as shares held in treasury, with the cost recognised as a deduction from equity.
RELX PLC
CALLED UP SHARE CAPITAL – ISSUED AND FULLY PAID
At start of year
Issue of ordinary shares
At end of year
No. of shares
1,982,299,312
2,662,320
1,984,961,632
2021
£m
286
–
286
No. of shares
1,980,802,659
1,496,653
1,982,299,312
2020
£m
286
–
286
NUMBER OF ORDINARY SHARES
Year ended 31 December
RELX PLC
At start of year
Issue of ordinary shares
Repurchase of ordinary shares
Net release of shares by the Employee Benefit Trust
At end of year
Shares in
issue
(millions)
Treasury
shares
(millions)
2021
Shares in
issue net of
treasury
shares*
(millions)
2020
Shares in
issue net of
treasury
shares*
(millions)
1,982.3
2.7
–
–
1,985.0
(56.3)
–
–
0.7
(55.6)
1,926.0
2.7
–
0.7
1,929.4
1,931.8
1.5
(7.8)
0.5
1,926.0
* At 31 December 2021 the total shares in issue net of treasury shares is 1,929,425,389 (2020: 1,926,018,680).
During the year, RELX PLC repurchased no RELX PLC ordinary shares (2020: 7.8m; 2019: 33.5m); repurchased shares are held in
treasury. In 2020 the total consideration for the RELX PLC repurchases was £150m.
The Employee Benefit Trust purchases RELX PLC shares which, at the trustees’ discretion, can be used in respect of the exercise
of share options and to meet commitments under conditional share awards. During the year, the Employee Benefit Trust purchased
61,040 shares for a total cost of £1m (2020: £37m; 2019: £37m). At 31 December 2021, shares held by the Employee Benefit Trust were
£86 m (2020: £97m; 2019: £94m) at cost.
The issue of ordinary shares in the year relates to the exercise of share options.
All of the RELX PLC ordinary shares rank equally with respect to voting rights and rights to receive dividends, except for shares held
in treasury, which do not attract voting or dividend rights. There are no restrictions on the rights to transfer shares.
At 31 December 2021, RELX PLC shares held in treasury related to 5,448,564 (2020: 6,192,953; 2019: 6,753,010) RELX PLC ordinary
shares held by the Employee Benefit Trust; and 50,087,679 (2020: 50,087,679; 2019: 42,267,027) RELX PLC ordinary shares held by
the parent company. No RELX PLC ordinary shares held in treasury were cancelled in 2021 (2020: nil).
RELX Annual report and financial statements 2021 | Notes to the consolidated financial statementsMarket segmentsGovernanceFinancial statements and other informationFinancial reviewCorporate ResponsibilityOverview 178
Notes to the consolidated financial statements
for the year ended 31 December 2021
24 Other reserves
At start of year
Profit attributable to RELX PLC shareholders
Dividends paid
Actuarial losses on defined benefit pension schemes
Fair value movements on cash flow hedges
Transfer to net profit from cash flow hedge reserve
Tax recognised in other comprehensive income
Increase in share based remuneration reserve (net of tax)
Settlement of share awards
Acquisitions
At end of year
Hedge
reserve
2021
£m
19
–
–
–
10
(9)
(1)
–
–
–
19
Other
reserves
2021
£m
1,195
1,471
(920)
321
–
–
(48)
55
(12)
–
2,062
Total
2021
£m
1,214
1,471
(920)
321
10
(9)
(49)
55
(12)
–
2,081
Total
2020
£m
979
1,224
(880)
(155)
(6)
22
35
27
(34)
2
1,214
Other reserves principally comprise retained earnings and the share based remuneration reserve.
25 Related party transactions
Transactions between RELX PLC and subsidiaries of the Group have been eliminated within the consolidated financial statements.
Transactions with joint ventures were made on normal market terms of trading and comprise sales of goods and services of
nil (2020: nil; 2019: £4m) and the rendering and receiving of goods and services of £0.2m (2020: £0.1m; 2019: £0.1m). As at
31 December 2021, amounts owed by joint ventures were £2.4m (2020: £0.8m; 2019: £5m) and amounts due to joint ventures
were £1.4m (2020: £0.4m; 2019: £0.5m). See note 6 for details of the Group’s participation in defined benefit pension schemes.
Key management personnel are also related parties as defined by IAS 24 – Related Party Disclosures and comprise the Executive
and Non-Executive Directors of RELX PLC. Key management personnel remuneration is set out below. For reporting purposes, salary,
benefits and annual incentive payments are considered short-term employee benefits.
KEY MANAGEMENT PERSONNEL REMUNERATION
Salaries, other short-term employee benefits and non-executive fees
Post-employment benefits
Share based remuneration*
Total
2021
£m
7
1
8
16
2020
£m
6
1
1
8
2019
£m
7
1
7
15
EXECUTIVE DIRECTORS
Total Executive Directors
Salary
£’000
2,085
2,034
1,984
Benefits
£’000
97
99
101
2021
2020
2019
Annual
incentive
£’000
3,604
2,623
3,038
Share based
remuneration*
£’000
7,953
595
7,343
Pension*
£’000
774
687
725
Total
£’000
14,514
6,038
13,191
* The figures for share based awards are calculated in accordance with the methodology set out in the UK Regulations. The figure for performance-related share
based awards includes share price appreciation since the date the award was granted. Please see page 102 for further details. Pension is calculated in
accordance with the methodology set out in the UK Regulations.
RELX Annual report and financial statements 2021 | Financial statements and other information 179
25 Related party transactions (continued)
NON-EXECUTIVE DIRECTORS
Fees and benefits
2021
£’000
1,055
2020
£’000
1,558
2019
£’000
1,569
The remuneration of non-executive directors comprises fees for services, and benefits primarily relating to tax filing support in respect
of filings resulting from their directorships. No deemed benefits were provided during 2021 to former Directors (2020: nil; 2019: nil).
No loans, advances or guarantees have been provided on behalf of any Director. The aggregate gains made by Executive Directors on
the exercise of options during 2021 were nil (2020: nil; 2019: nil).
26 Exchange rates
The following exchange rates have been applied in preparing the consolidated financial statements:
Euro to sterling
US dollar to sterling
Income statement
2021
1.16
1.38
2020
1.12
1.28
2019
1.14
1.28
Statement of
financial position
2021
1.19
1.35
2020
1.12
1.37
27 Approval of financial statements
The consolidated financial statements were approved and authorised for issue by the Board of Directors on 9 February 2022.
RELX Annual report and financial statements 2021 | Notes to the consolidated financial statementsMarket segmentsGovernanceFinancial statements and other informationFinancial reviewCorporate ResponsibilityOverview
180
Notes to the consolidated financial statements
for the year ended 31 December 2021
28 Related undertakings
A full list of related undertakings (comprising subsidiaries, joint ventures, associates and other significant holdings) is set out below.
All are 100% owned directly or indirectly by the Group except where percentage ownership denoted in (x%).
Company name
Australia
Emailage Pty Ltd
LNRS Data Services (Australia) Pty Ltd
Reed Exhibitions Australia Pty Ltd
Reed International Books Australia Pty Ltd
RELX Australia Pty Ltd
ThreatMetrix Pty Ltd
Austria
LexisNexis Verlag ARD ORAC GmbH & Co KG
ORAC GmbH
Reed CEE GmbH
Reed Messe Salzburg GmbH
Reed Messe Wien GmbH
RELX Austria GmbH
Standout GmbH
Belgium
LexisNexis BV
Brazil
Elsevier Editora Ltda
Fircosoft Brasil Consultoria e Servicos de Informatica Ltda
LexisNexis Informações e Sistemas Empresariais Ltda
LexisNexis Serviços de Análise de Risco Ltda
MLex Brasil Midia Mercadologica Ltda
Reed Exhibitions Alcântara Machado Ltda
SST Software do Brasil Ltda
Canada
Elsevier Canada Inc.
LexisNexis Canada Inc.
RELX Canada Ltd
Share
class
Preference
Ordinary
Ordinary
Ordinary
Ordinary
Ordinary
Ordinary
Ordinary
Ordinary
Ordinary
Ordinary
Ordinary
Ordinary
Ordinary
Quotas
Quotas
Quotas
Quotas
Quotas
Quotas
Quotas
Common
Class A
Common
China
Ordinary
Bakery China Exhibitions Co., Ltd (25%)
Beijing Medtime Elsevier Education Technology Co., Ltd (49%) Common
Ordinary
C-One Energy (Guangzhou) Co., Ltd
Ordinary
Genilex (Beijing) Information Technology Co., Ltd
ICIS Consulting (Beijing) Co., Ltd
KeAi Communications Co., Ltd (49%)
LexisNexis Risk Solutions (Shanghai) Information
Technologies Co., Ltd
Reed Business Information (Shanghai) Co Ltd
Reed Elsevier Information Technology (Beijing) Co., Ltd
Reed Exhibitions (China) Co., Ltd
Reed Exhibitions Hengjin Co., Ltd (51%)
Reed Exhibitions (Shanghai) Co., Ltd
Reed Huabai Exhibitions (Beijing) Co., Ltd (51%)
Reed Huabo Exhibitions (Shenzhen) Co., Ltd (65%)
Reed Huaqun Exhibitions Co., Ltd (52%)
Reed Exhibitions Kuozhan (Shanghai) Co., Ltd (60%)
Reed Sinopharm Exhibitions Co., Ltd (50%)
RELX (China) Investment Co., Ltd
Shanghai Datong Medical Information Technology Co., Ltd
Shanghai SinoReal Exhibitions Co., Ltd (27.5%)
Z&R Exhibitions Co., Ltd (27.5%)
Colombia
LexisNexis Risk Solutions S.A.S.
Denmark
Elsevier A/S
Dubai, UAE
Reed Exhibitions F Z-LLC
RELX Middle East FZ-LLC
Egypt
Elsevier Egypt LLC
France
Closd SAS
Elsevier Holding France SAS
Elsevier Masson SAS
Evoluprint SAS
Fircosoft SAS
GIE EDI Data (83%)
GIE Juris Data
Ordinary
Ordinary
Common
Ordinary
Common
Ordinary
Ordinary
Ordinary
Ordinary
Ordinary
Ordinary
Ordinary
Ordinary
Ordinary
Ordinary
Ordinary
Ordinary
Ordinary
Ordinary
Ordinary
Ordinary
Ordinary
Ordinary
Ordinary
Ordinary
Ordinary
Ordinary
Ordinary
Ordinary
Reg
office
Company name
GIE PRK – Publicite Robert Krier
LexisNexis Business Information Solutions SA
LexisNexis Business Information Solutions Holding SA
LexisNexis International Development & Services SAS
LexisNexis SA
Reed Exhibitions ISG SARL
RELX France SA
RELX France Services SAS
RX France SAS
SAFI SA (50%)
Germany
Elsevier GmbH
Elsevier Information Systems GmbH
LexisNexis GmbH
PatentSight GmbH
Reed Exhibitions Deutschland GmbH
RELX Deutschland GmbH
Tschach Solutions GmbH
Greece
Mack Brooks Hellas SA
Hong Kong
Ascend China Holding Ltd
JC Exhibition and Promotion Ltd (65%)
JYLN Sager Ltd
LNRS Data Services (China) Ltd
Reed Exhibitions Ltd
RELX (Greater China) Ltd
India
FircoSoft India Private Ltd
Next Events Private Ltd
Parity Computing India Private Ltd
Reed Elsevier Publishing (India) Private Ltd
Reed Manch Exhibitions Private Ltd (70%)
Reed Triune Exhibitions Private Ltd (72%)
RELX India Private Ltd
Indonesia
PT Reed Exhibitions Indonesia (70%)
PT RELX Information Analytics Indonesia
Ireland
Elsevier Services Ireland Ltd
LexisNexis Risk Solutions (Europe) Ltd
LexisNexis Risk Solutions (Ireland) Ltd
3D4Medical Ltd
3D4Medical Support Services Ltd
Israel
LexisNexis Israel Ltd
Italy
Elsevier SRL
ICIS Italia SRL
Reed Exhibitions ISG Italy SRL
Reed Exhibitions Italia SRL
Japan
Ascend Japan KK
Elsevier Japan KK
LexisNexis Japan KK
PatentSight Japan Inc.
Reed ISG Japan KK
RX Japan KK
Share
class
Registered Capital
Ordinary
Ordinary
Ordinary
Ordinary
Ordinary
Ordinary
Ordinary
Ordinary
Ordinary
Ordinary
Ordinary
Ordinary
Ordinary
Ordinary
Ordinary
Ordinary
Ordinary
Ordinary
Ordinary
Ordinary
Ordinary
Ordinary
Ordinary
Ordinary
Ordinary
Ordinary
Ordinary
Ordinary
Ordinary
Ordinary
Class A
Class B
Ordinary
Ordinary
Ordinary
Ordinary
Ordinary
Ordinary
Ordinary
Registered Capital
Ordinary
Ordinary
Ordinary
Ordinary
Ordinary
Ordinary
Common Shares
Ordinary
Ordinary
AUS2
AUS1
AUS2
AUS2
AUS2
AUS2
AUT2
AUT2
AUT1
AUT3
AUT1
AUT3
AUT4
BEL1
BRA1
BRA2
BRA6
BRA7
BRA4
BRA3
BRA5
CAN3
CAN1
CAN2
CHN1
CHN2
CHN5
CHN6
CHN18
CHN15
CHN7
CHN13
CHN3
CHN4
CHN12
CHN10
CHN4
CHN16
CHN4
CHN8
CHN4
CHN9
CHN17
CHN11
CHN14
COL1
DNK1
UAE1
UAE2
EGY1
FRA9
FRA1
FRA1
FRA2
FRA8
FRA3
FRA3
Korea (Republic of)
Elsevier Korea LLC
LexisNexis Legal and Professional Service Korea Ltd
Reed Exhibitions Korea Ltd
Reed Exporum Ltd (60%)
Reed K. Fairs Ltd (70%)
Ordinary
Ordinary
Ordinary
Ordinary
Ordinary
Macau
Reed Exhibitions Macau Ltd
Malaysia
Ordinary
MAC1
LexisNexis Malaysia Sdn Bhd
Ordinary
MYS1
Reg
office
FRA4
FRA3
FRA5
FRA3
FRA3
FRA6
FRA6
FRA8
FRA4
FRA7
DEU3
DEU2
DEU4
DEU6
DEU1
DEU1
DEU5
GRE1
HNK1
HNK5
HNK3
HNK2
HNK5
HNK4
IND2
IND1
IND3
IND1
IND1
IND4
IND1
IDN1
IDN2
IRL2
IRL1
IRL1
IRL3
IRL3
ISR1
ITA1
ITA2
ITA1
ITA1
JPN1
JPN2
JPN2
JPN4
JPN3
JPN3
KOR1
KOR2
KOR3
KOR4
KOR3
RELX Annual report and financial statements 2021 | Financial statements and other information 28 Related undertakings (continued)
Company name
Mexico
Emailage MCA, SA de CV
Masson-Doyma Mexico, S.A.
Reed Exhibitions Mexico S.A. de C.V.
New Zealand
LexisNexis NZ Ltd
Share
class
Ordinary
Ordinary
Fixed
Reg
office
MEX2
MEX1
MEX3
Ordinary
NZL1
Philippines
Reed Elsevier Shared Services (Philippines) Inc.
Common Shares
PHL1
Poland
AI Digital Contracts Sp. z.o.o. (75%)
Elsevier Sp. z.o.o.
Russia
Elsevier LLC
LexisNexis LLC
Real Estate Events Direct LLC (80%)
RELX LLC
3D4Medical LLC
Singapore
Elsevier (Singapore) Pte Ltd
Emailage Pte. Ltd
Lexis-Nexis Philippines Pte Ltd (75%)
LNRS Data Services Pte Ltd
RE (HAPL) Pte Ltd
RELX (Singapore) Pte. Ltd
Ordinary
Ordinary
Participation Shares
Ordinary
Participation Shares
Participation Shares
Ordinary
Ordinary
Ordinary
Ordinary-B
Preference shares
Ordinary
Ordinary
Ordinary
South Africa
Globalrange SA (Pty) Ltd
LexisNexis (Pty) Ltd (78%)
LexisNexis Risk Management (Pty) Ltd (78%)
Property Payment Exchange (SA) (Pty) Ltd (78%)
RELX (Pty) Ltd
Reed Exhibitions (Pty) Ltd (90%)
Reed Events Management (Pty) Ltd (90%)
Reed Exhibitions Group(Pty) Ltd (90%)
Reed Venue Management (Pty) Ltd (90%)
Ordinary
Ordinary
Ordinary
Ordinary
Ordinary
Ordinary
Ordinary
Ordinary
Ordinary
POL1
POL2
RUS1
RUS1
RUS1
RUS1
RUS2
SGP1
SGP5
SGP2
SGP3
SGP1
SGP2
ZAF1
ZAF2
ZAF2
ZAF2
ZAF2
ZAF2
ZAF2
ZAF2
ZAF2
Spain
Elsevier Espana SL
Switzerland
Fircosoft Schweiz GmbH
RELX Swiss Holdings SA
Taiwan
Elsevier Taiwan LLC
Thailand
Reed Tradex Company Ltd (49%)
RELX Holding (Thailand) Co., Ltd
RELX Information Analytics (Thailand) Co., Ltd
The Netherlands
AGRM Solutions C.V.
Elsevier B.V.
ICIS Benchmarking Europe B.V
LexisNexis Business Information Solutions B.V.
LexisNexis Univentio B.V.
LNRS Data Services BV
Misset Uitgeverij B.V.(49%)
One Business B.V. (33%)
RELX Employment Company B.V.
RELX Finance B.V.
RELX Holdings B.V.
RELX Nederland B.V.
RELX Overseas B.V.
Turkey
Elsevier STM Bilgi Hizmetleri Limited Şirketi
Mack Brooks Fuarcilik A.S
Reed Tüyap Fuarcilik A.Ș.(50%)
United Kingdom
3rd Street Group Ltd
Butterworths Ltd
Participations
ESP1
Ordinary
Ordinary
CHE2
CHE1
Ordinary
TWN1
Ordinary
Preference
Ordinary
Ordinary
Partnership Interest
Ordinary
Ordinary
Ordinary
Ordinary
Ordinary
Ordinary
Ordinary
Ordinary
Ordinary
Ordinary
Ordinary
Ordinary RE
Ordinary
Registered Capital
A Ordinary
B Ordinary
Ordinary
Ordinary
THA1
THA2
THA3
NLD1
NLD1
NLD1
NLD1
NLD2
NLD1
NLD3
NLD4
NLD1
NLD1
NLD1
NLD1
NLD1
TUR1
TUR 3
TUR2
GBR3
GBR4
Company name
Cordery Compliance Ltd (71%)
Cordery Ltd (71%)
Crediva Ltd
Dew Events Ltd
Digital Foundry Network Ltd (50%)
E & P Events LLP (50%)
Elsevier Life Sciences IP Ltd
Elsevier Ltd
Emailage Ltd
Gamer Network Ltd
Gapsquare Ltd
Imbibe Media Ltd
Insurance Initiatives Ltd
LexisNexis Risk Solutions UK Ltd
LNRS Data Services HoldingsLtd
LNRS Data Services Ltd
Mack-Brooks Exhibitions Ltd
Mack-Brooks (France) Ltd
MCM Central Ltd
MCM Expo Ltd
Mendeley Ltd
MLex Ltd
NLife Ltd (23.5%)
Offshore Europe (Management) Ltd
Offshore Europe Partnership (50%)
Out There Gaming Ltd (70%)
Oxford Spires Management Co; Ltd (55%)
RE (EPS) Ltd
RE (HPL) Ltd
RE (RCB) Ltd
RE Secretaries Ltd
RE (SOE) Ltd
Reed Business Information Ltd
Reed Events Ltd
Reed Exhibitions Ltd
Reed Nominees Ltd
RELX Finance Ltd
RELX Group plc
RELX (Holdings) Ltd
RELX (Investments) plc
RELX Overseas Holdings Ltd
RELX (UK) Ltd
REV GP (UK) LLP
REV Venture Partners Ltd
REV V LP
SciBite Ltd
Snowflake Software Ltd
Tracesmart Ltd
TruNarrative Ltd
Wunelli Ltd
Share
class
Ordinary
Ordinary
Ordinary
Ordinary
Ordinary
No Shares
Ordinary
Ordinary
Ordinary
Ordinary
A Ordinary,
B Ordinary
Ordinary
Ordinary
Ordinary
Ordinary
Ordinary
Ordinary
Ordinary
Ordinary
Ordinary
Ordinary
Ordinary
Ordinary
Ordinary
Partnership Interest
Ordinary
Ordinary
Ordinary
Ordinary
Ordinary
Ordinary
Ordinary
Ordinary
Ordinary
Ordinary
Ordinary
Ordinary
Ordinary
Ordinary
Ordinary
Ordinary
Ordinary
No Shares
Ordinary
Partnership Interest
A Ordinary,
B Ordinary,
C Ordinary
Ordinary
Ordinary
Ordinary
Ordinary
Crop Data Management Systems, Inc.
Dunlap-Hanna Publishers (50%)
Elsevier Holdings Inc.
Elsevier Inc.
Elsevier Medical Information LLC
United States
Common Stock
Accuity Asset Verification Services Inc.
Common Stock
Accuity Inc.
Common Stock
Altiris, Inc.
American Textile Machinery Exhibition International Inc. (40%) Common Stock
Common Stock
Aries Systems Corporation
Membership
Chemical Data, LLC
Interest
Common Stock
Partnership Interest
Common Stock
Common Stock
Membership
Interest
Common Stock
Common Stock
Common Stock
Membership
Interest
Common Stock
Membership
Interest
Membership Interest
Common Stock
Common Stock
Common Stock
Common Stock
Common Stock
Common Stock
Common Stock
Common Stock
IDG-RBI China Publishers LLC (50%)
Knovel Corporation
Knowable Inc (75%)
Knowledge Diffusion Inc.
Legal InQuery Solutions Inc.
LexisNexis Claims Solutions Inc.
LexisNexis Coplogic Solutions Inc.
LexisNexis of Puerto Rico Inc.
LexisNexis Risk Assets Inc.
Elsevier STM Inc.
Emailage Corp.
Enclarity, Inc.
Gaming Business Asia LLC (50%)
Health Market Science, Inc.
ID Analytics LLC
181
Reg
office
GBR4
GBR4
GBR5
GBR3
GBR3
GBR3
GBR7
GBR7
GBR5
GBR3
GBR2
GBR3
GBR8
GBR5
GBR1
GBR2
GBR3
GBR3
GBR3
GBR3
GBR7
GBR4
GBR12
GBR3
GBR3
GBR3
GBR10
GBR1
GBR1
GBR1
GBR1
GBR3
GBR1
GBR3
GBR3
GBR1
GBR1
GBR1
GBR1
GBR1
GBR1
GBR1
GBR1
GBR1
GBR1
GBR13
GBR2
GBR5
GBR5
GBR11
USA1
USA1
USA1
USA3
USA3
USA3
USA3
USA7
USA3
USA3
USA3
USA3
USA2
USA2
USA3
USA2
USA1
USA3
USA3
USA8
USA3
USA9
USA2
USA2
USA9
USA2
RELX Annual report and financial statements 2021 | Notes to the consolidated financial statementsMarket segmentsGovernanceFinancial statements and other informationFinancial reviewCorporate ResponsibilityOverview 182
Notes to the consolidated financial statements
for the year ended 31 December 2021
28 Related undertakings (continued)
Company name
LexisNexis Risk Data Management Inc.
LexisNexis Risk Holdings Inc.
LexisNexis Risk Solutions Inc .
LexisNexis Risk Solutions FL Inc.
LexisNexis Special Services Inc.
LexisNexis VitalChek Network Inc.
LNRS Data Services Inc.
Matthew Bender & Company, Inc.
MLex US, Inc.
PCLaw Time Matters LLC (51%)
PoliceReports.US, LLC
Portfolio Media, Inc.
Reed Technology and Information Services Inc.
RELX Capital Inc.
RELX Inc.
RELX Risks Inc.
RELX US Holdings Inc.
REV IV Partnership LP
SAFI Americas LLC (50%)
SageStream LLC
The Reed Elsevier Ventures 2005 Partnership LP
The Reed Elsevier Ventures 2006 Partnership LP
The Reed Elsevier Ventures 2011 Partnership LP
The Reed Elsevier Ventures 2012 Partnership LP
The Reed Elsevier Ventures 2013 Partnership LP
The Remick Publishers (50%)
ThreatMetrix, Inc.
TruNarrative LLC
World Compliance, Inc.
ZetX, Inc.
Vietnam
Reed Tradex Vietnam LLC (49%)
Share
class
Common Stock
Common Stock
Common Stock
Common Stock
Common Stock
Common Stock
Common Stock
Common Stock
Common Stock
No Stock
Membership
Interest
Common Stock
Common Stock
Common Stock
Common Stock
Common Stock
Common Stock
No Stock
Membership
Interest
Membership
Interest
Partnership Interest
Partnership Interest
Partnership Interest
Partnership Interest
Partnership Interest
Partnership Interest
Common Stock
Membership
Interest
Common Stock
Common Stock,
Common Class B
Reg
office
USA2
USA2
USA2
USA2
USA6
USA2
USA5
USA3
USA3
USA2
USA2
USA3
USA3
USA4
USA3
USA2
USA3
USA4
USA3
USA1
USA4
USA4
USA4
USA4
USA4
USA7
USA2
USA3
USA4
USA6
Ordinary
VIE1
Registered offices
Australia
AUS1: Building B, Level 2, Unit 11, 1 Maitland Place, Baulkham Hills, NSW 2153
AUS2: Tower 2, Level 1, 475 Victoria Avenue, Chatswood NSW 2067
Austria
AUT1: Messeplatz 1, 1020, Wien, Austria
AUT2: Marxergasse 25, 1030, Wien, Austria
AUT3: Am Messezentrum 6, 5020, Salzburg, Austria
AUT4: Am Messezentrum 7, 5020, Salzburg, Austria
Belgium
BEL1: Oudenaardseheerweg 129, 9810 Nazareth, Belgium
Brazil
BRA1: Rua da Assembleia no 100, 6th Floor, RJ Centro, Rio de Janiero, 20011-904, Brazil
BRA2: Rua Bela Cintra 2305, São Paulo, 01415-009,Brazil
BRA3: Rua Bela Cintra no. 1200, 10th floor, Sâo Paulo, 01415-001, Brazil
BRA4: Avenida paulista, 2300-Piso Pilotis room 28, Sao Paulo, 01310-300,Brazil
BRA5: Rua Cel Fonseca, 203 A-Centro, Botucatu, SP, 18600-200,Brazil
BRA6:
BRA7:
BRA8:
Avenida Ibirapuera, 2033, CJ 81, SL 6, Sao Paulo , SP, 04029-901, Brazil
Alameda Rio Negro, 161 Alphaville Industrial, Barueri SP 06.455-000, Brazil
Rua Alvaro Anes 46, 3 Andar, Sâo Paulo, 05421-010, Brazil
Canada
CAN1: 123 Commerce Valley Drive East, Suite 700, Markham, Ontario, L3T 7W8, Canada
CAN2: 555 RIichmond Street West, Toronto, Ontario,M5V 3B1, Canada
CAN3: 26E-1501 av. McGill College, Montreal, Quebec, H3A 3N9, Canada
China
CHN1: Zhongkun Building, Room 612, Gaoliangqiaoxie Street, No. 59, Haidan District,
Beijing, 100044, China
CHN2: West Building of Administration Building, Xueyuan Road No. 38 Peking University
Health Science Center, Haidan District, Beijing, 100191, China
CHN3: Oriental Plaza, No. 1 East Chang An Ave, Tower W1, 7th Floor, Unit 1-7, Dong Cheng
District, Beijing, 100738, China
CHN4: Ping An International Finance Center, Room 1504, 15th Floor, Tower A-101,
3-24 floor, Xinyuan South Road, Chaoyang District, Beijing, 100027, China
CHN5: Unit B1303-1 & 1305, 13F Center Plaza, 161 Linhe Road West, Tianhe District
Guangzhou, China
CHN6: 404 F4, No.9 Shangdi 9th Street, Haidian District, Beijing, 100085, China
CHN7: Room 5106, Raffle City, 268 Middle Xizang Road, Huangpu District, Shanghai,
CHN8:
200001, China
Intercontinental Center, 42F, 100 Yutong Road, Zhabei District, Shanghai,
200070, China
CHN9: Room 319, 238 Jiangchangsan Road, Jing’an District, Shanghai, China
CHN10: Room 304, Sanlian Building, No.8, Huajing Road, Pudong District, Shanghai,
200070, China
CHN11: Building 2, Room No. 3895, Changjiang Avenue, No. 161, Changliang Farm,
Chongming County, Shanghai, China
CHN12: Floor 2, No.979, Yunhan Road, Nicheng Town, Pudong New Area, Shanghai, China
CHN13: 4/F Block C, No 999 Jingzhong Road, Changning District, Shanghai, China
CHN14: A0208, 1st floor,building 2, Yard 66, Yanfu Road, Yancun Tow,Fangshan District
Beijing, China
CHN15: 16 Donghuangchenggen North Street, Beijing, 100717, China
CHN16: Shenzhen International Chamber of Commerce Tower, Room 1801-1802, 1805,
Fuhua 3rd Road, Futian District, Shenzhen, 518048, China
CHN17: 5/F Unit A, Digital China Centre No. 567 Tianshan West Road, ChangNing District,
Shanghai, 200335, China
CHN18: Room 12B, 7th Floor, Oriental Plaza, 1 East Chang An Avenue, Beijing, China
Colombia
COL1: Philippe Prietocarrizosa & Uria Abogados, Carrera 9 No. 74-08 Oficina 105, Bogotá,
d.c., 76600, Colombia
Denmark
DNK1: Niels Jernes Vej 10, 9220, Aalborg Øst, Denmark
Dubai, UAE
UAE1: Office G-49, Building No 9, Dubai Media City, Post Box 502425, Dubai, United Arab
Emirates
UAE2: Al Sufouh Complex, Floor 3, No. 304, Dubai, United Arab Emirates
Egypt
EGY1:
Land Mark Office Building, 2nd Floor, 90th Street, City Center, 5th Settlement,
New Cairo, Cairo, Egypt
65, rue Camille Desmoulins, 92130, Issy les Moulineaux, France
France
FRA1:
FRA2: Parc Euronord – 10, rue du Parc – 31150 Bruguieres, France
FRA3: 141 rue de Javel, 75015 Paris, France
FRA4: 52 Quai de Dion Bouton 92800 Puteaux, France
FRA5:
FRA6: 27-33 quai Alphonse Le Gallo, 92100, Boulogne-Billancourt, France
FRA7:
FRA8: 151-155 Rue de Bercy, 75012 Paris, France
168, Rue Saint-Denis, 75002 Paris, France
FRA9:
6-8 Rue Chaptal, 75009 Paris, France
Immeuble « Technopolis », 350 rue Georges Besse –Nîmes (30000), France
RELX Annual report and financial statements 2021 | Financial statements and other information 183
28 Related undertakings (continued)
Registered offices
Germany
DEU1:
DEU2: St. Martin Tower, Wing, 2nd floor, Franklinstraße 61-63, 60486, Frankfurt am Main
Völklinger Strasse 4, 40219, Düsseldorf, Germany
Registered offices
Russia
RUS1: Office 13, room 1, 2nd Syromyatnicheskiy 1, 105120, Moscow, Russian Federation
RUS2: Krasnykh Partizan St. 152, Office 505, 350049, City of Krasnodar, Russian
Indonesia
IDN1:
IDN2:
Ireland
IRL1:
IRL2:
IRL3:
Hessen, Germany
DEU3: Bernhard-Wicki-Strasse 5, 80636, Munich, Bavaria, Germany
DEU4: Heerdter Sandberg 30, 40549, Düsseldorf, Germany
DEU5: Steinhäuserstrasse 9, 76135, Karlsruhe, Germany
Joseph-Schumpeter-Allee 33, 53227, Bonn
DEU6:
Greece
GRE1: 188A, Filolaou Str.,Athens, 11632, Greece
Hong Kong
HNK1: 20/F Alexandra House, 18 Chater Road, Central, Hong Kong
HNK2: Level 54 Hopewell Center, 183 Queens Road East, Hong Kong
HNK3: Flat 1506, 15/F, Lucky Center, No. 165-171 Wan Chai Road, Wan Chai, Hong Kong
HNK4:
HNK5:
11/F Oxford House, Taikoo Place, 979 King’s Road, Quarry Bay, Hong Kong
17th Floor, One Island East, Taikoo Place, 18 Westlands Road, Quarry Bay, Hong
Kong
India
IND1:
IND2:
IND3:
818, 8th Floor, Indraprakash Builing, 21 Barakhamba Road, New Delhi, 110001, India
S21 Vatika Centre, No 471 Anna Salai, Taynampet, Chennai, 600035, India
99/100, Prestige Towers Unit No. 505, Fifth Floor, Residency Road, Bangalore ,
Karnataka, 560025, India
IND4: #25, 3rd floor, 8th Main Road, Vasanthnager, Bangalore, 560052, India
APL Tower Central Park 26th Floor Unit T3 Jl. S. Parman Kav., 28, Grogol,
Pertamburan Jakarta Barat 11470, Indonesia
Gedung World Trade Center, 3 LT 20 Spaces JL Jend Sudirman Kav 29-31 RT/RW
008/003, Karet Kuningan, Setiabudi, Jakarta Selatan, DKI Jakarta 12940 Indonesia
80 Harcourt Street, Dublin 2, Ireland
Suite 4320, Atlantic Avenue, Westpark Business Campus, Shannon, Clare, Ireland
1st Floor The Grange Stillorgan Road, Blackrock, Dublin, Ireland
Israel
ISR1: Meitar, attorneys at Law, 16 Abba Hillel Road, Ramat Gan, 5250608, Israel
Italy
ITA1:
ITA2:
Japan
Via Marostica 1, 20146, Milan, Italy
Studio Colombo e Associati, Via Cino del Duca 5, 20122, Milano, Italy
JPN1: Kyodo Tsushin Kaikam 2F, 2-2-5 Toronomon, Minato-ku, Tokyo, 105-0001
JPN2:
JPN3: Shinjuku-Nomura Bldg., 1-26-2 Nishi-shinjuku, Shinjuku-ku, Tokyo, Japan
JPN4:
7F Cross Office Uchisaiwaicho, 1-18-6 Nishi-Shinbashi, Minato-ku, Tokyo
1-9-15, Higashi Azabu, Minato-ku Tokyo Japan
Korea (South)
KOR1: Chunwoo Building, 4th floor, 534 Itaewon-dong, Yongsan-gu, Seoel, 140-861,
Republic of Korea
KOR2: 206 Noksapyeong-daero, Yongsan-gu, Seoel, Republic of Korea
KOR3: 1622-24 Block A Terra Tower2, 201 Songpa-daero, Songpa-gu, Seoul, Republic
of Korea
KOR4: 4th floor at 195-6 Jamsil-dong, Songpagu, Seoul, Republic of Korea
Malaysia
MYS1: Suite 29-1, Level 29, Vertical Corporate, Tower B, Avenue 10, The Vertical,
59200 Bangsar South City, Kuala Lumpur, Malaysia
Macau
MAC1: Rua De Xangai, No. 175 Edif. Associacao Comercial de Macau, 11 Andar, Bloco K,
Macau
Mexico
MEX1:
MEX2:
Av Insurgentes Sur # 1388 Piso 8, Col. Actipan, Deleg. Benito Juarez, Mexico DF, C.P.
03230, Mexico
DVNA Del Valle-Nunez y Asociados, Goldsmith No 37 Desp 803, Col Planco
Chapultepe, Ciudad de Viver, 11.560,Mexico
MEX 3: Avenida Paseo de la Reforma 243, Piso 15, Col. Cuauhtemoc, Mexico City, 06500,
Mexico
New Zealand
NZL1:
Level 1, 138 The Terrace, P.O. Box 472, Wellington 6011, New Zealand
Philippines
PHL1: Building H, 2nd Floor, U.P. Ayalaland TechnoHub, Commonwealth Avenue,
Quezon City, Metro Manila, 1101, Philippines
Poland
POL1:
POL2:
ul. św. Antoniego 2/4, 50-073, Wrocław,Poland
Al.JJana Pawla II, 22, 00-133, Warszawa, Poland
Federation
Singapore
SGP1:
SGP2:
SGP3:
SGP4:
SGP5:
3 Killiney Road, #08-01 Winsland House 1, Singapore, 239519, Singapore
80 Robinson Road, #02-00, Singapore, 068898, Singapore
1 Changi Business Park Crescent, #06-01 Plaza 8 & CBP, 48602551, Singapore
120 Lower Delta Road, #12-02, Cendex Centre, 169208, Singapore
71 Robinson Road, #14-01, 068895, Singapore
South Africa
ZAF1:
Fourways Gold Park, 1st Floor – Wentworth Building, 32 Roos Street, Fourways,
2191, South Africa
ZAF2: Building 8, Country Club Estate Office Park, 21 Woodlands Drive, Woodmead,
Gauteng, 2191, South Africa
Spain
ESP1: C/ Josep Tarradellas 20-30, 1º / 20029, Barcelona, Spain
Switzerland
CHE1: Faubourg de l’Hôpital 23, 2000 Neuchatel, Switzerland
CHE2: Bahnhofstrasse 100, 8001 Zurich, Switzerland
Taiwan
TWN1: Rm N818, 8F, Chia Hsin Building II, No.9 , Lane 3, Minsheng West Road, Taipei
10449, Taiwan
Thailand
THA1: Sathorn Nakorn Building, Floor 32, No. 100/68-69 North Sathon Road, Silom,
Bangrak, Bangkok, 10500, Thailand
THA2: 14th Floor, CTI Tower, 191/70-73 Ratchadapisek Road, Khwaeng Klongtoey, Khet,
Klongtoey, Bangkok, Thailand
THA3: 2 Ploenchit Centre, Room 7, Floor G., Sukhumvit Road, Klongtoey, Bangkok, 10110,
Thailand
The Netherlands
NLD1: Radarweg 29, 1043 NX Amsterdam, Netherlands
NLD2: Galileiweg 8, 2333 BD Leiden, Netherlands
NLD3: Prins Hendrikstraat 17, 7001GK Doetinchem
NLD4: Spaklerweg 53, 1114 AE Amsterdam-Duivendrecht
Turkey
TUR1: Maslak Mah. Bilim Sokak Sun Plaza Kat:13 Şişli-Maslak, Istanbul, Turkey
TUR2: E - 5 Karayolu Üzeri, Gürpınar Kavşağı 34500, Büyükçekmece ,Istanbul, 34500,
Turkey
TUR3: Fulya Mah. Hakkı Yeten Cad. No:10/C, Selenium Plaza Kat:5,6 Fulya, Beşiktaş
İstanbul, Turkey
1-3 Strand, London, WC2N 5JR, United Kingdom
United Kingdom
GBR1:
GBR2: Quadrant House, The Quadrant, Sutton, Surrey, SM2 5AS, United Kingdom
GBR3: Gateway House, 28 The Quadrant, Richmond, Surrey, TW9 1DN, United Kingdom
GBR4: Lexis House, 30 Farringdon Street, London, EC4A 4HH, United Kingdom
GBR5: Global Reach, Dunleavy Drive, Cardiff, CF11 0SN, United Kingdom
GBR6: The Eye, 1 Procter Street, London, WC1V 6EU, United Kingdom
GBR7: The Boulevard, Langford Lane, Kidlington, Oxford, OX5 1GB, United Kingdom
GBR8: Third Floor, City Buildings, Carrington Street, Nottingham, NG1 7FG
GBR9: 1st Floor 80 Moorbridge Road, Maidenhead, Berkshire, SL6 8BW
GBR10: 40 Kimbolton Road, Bedford, England, MK40 2NR
GBR11: 1000 Lakeside, Western Road, Portsmouth, PO6 3EN, United Kingdom
GBR12: 5 Oakwood Drive, Loughborough, England, LE11 3QF
GBR13: Biodata Innovation Centre Wellcome Genome Campus, Hinxton, Cambridge,
England, CB10 1DR
1007 Church Street, Evanston IL 60201
United States
USA1:
USA2: 1000 Alderman Dr., Alpharetta, GA 30005
230 Park Ave, New York, NY 10169
USA3:
USA4: 1105 North Market St, Wilmington, DE 19801
USA5:
USA6: Puerta Del Condado #1095, Wilson Ave, Local #3, San Juan, PR 00907
USA7:
USA8: 1209 Orange Street, Wilmington, DE 19801
USA9: 9443 Springboro Pike, Miamisburg, OH 45342
313 Washington Street, Suite 400, Newton, MA 02458
3355 West Alabama Street, Houston, TX 77098
Vietnam
VIE1:
2nd Floor, Kova Center, 92G-92H Nguyen Huu Canh Street, Ward no. 22, District.
Binh Thanh, Ho Chi Minh City, Vietnam
RELX Annual report and financial statements 2021 | Notes to the consolidated financial statementsMarket segmentsGovernanceFinancial statements and other informationFinancial reviewCorporate ResponsibilityOverview 184
5 year summary
RELX consolidated financial information
Revenue
Reported operating profit
Adjusted operating profit
Reported net profit attributable to RELX PLC shareholders
Adjusted net profit attributable to RELX PLC shareholders
RELX PLC financial information
Reported earnings per ordinary share (pence)
Adjusted earnings per ordinary share (pence)
Dividend per ordinary share (pence)
Note
2021
£m
2020
£m
2019
£m
2018
£m
7,244
1,884
2,210
1,471
1,689
76.3p
87.6p
49.8p
7,110
1,525
2,076
1,224
1,543
63.5p
80.1p
47.0p
7,874
2,101
2,491
1,505
1,808
77.4p
93.0p
45.7p
7,492
1,964
2,346
1,422
1,674
71.9p
84.7p
42.1p
1
1
2
2017
£m
7,341
1,905
2,284
1,648
1,620
81.6p
80.2p
39.4p
(1) Adjusted figures are presented as additional performance measures used by management. Further details on the adjusted measures can be found in the
Alternative performance measures section on pages 193 to 197.
(2) Dividend per ordinary share is based on the interim dividend and proposed final dividend for the relevant year.
RELX Annual report and financial statements 2021 | Financial statements and other information 185
RELX PLC
Annual Report
and Financial
Statements
In this section
186 RELX PLC statement of financial position
187 RELX PLC statement of changes in equity
187 RELX PLC accounting policies
188 Notes to the RELX PLC financial statements
RELX Annual report and financial statements 2021Market segmentsGovernanceFinancial statements and other informationFinancial reviewCorporate ResponsibilityOverview 186
RELX PLC statement of financial position
AS AT 31 DECEMBER
Non-current assets
Investments in subsidiary undertakings
Current assets
Trade and other receivables
Receivables: amounts due from subsidiary undertakings
Total assets
Current liabilities
Taxation
Other payables
Net assets
Capital and reserves
Share capital
Share premium
Shares held in treasury
Capital redemption reserve
Other reserves
Merger reserve
Net profit
Reserves
Shareholders’ equity
Note
1
2021
£m
2020
£m
18,327
18,327
1
1,857
20,185
–
3
3
20,182
286
1,491
(789)
36
177
11,150
1,046
6,785
20,182
18,322
18,322
–
1,711
20,033
12
2
14
20,019
286
1,459
(789)
36
172
11,150
1,051
6,654
20,019
The RELX PLC Company financial statements were approved by the Board of Directors and authorised for issue on 9 February 2022.
They were signed on its behalf by:
P Walker
Chair
N L Luff
Chief Financial Officer
RELX Annual report and financial statements 2021 | Financial statements and other information 187
RELX PLC statement of changes in equity
Balance at 1 January 2020
Total comprehensive income for the year
Dividends paid (4)
Repurchase of ordinary shares
Issue of ordinary shares, net of expenses
Equity instruments granted to employees of the Group
Transfer of net profit to reserves
Balance at 1 January 2021
Total comprehensive income for the year
Dividends paid (4)
Issue of ordinary shares, net of expenses
Equity instruments granted to employees of the Group
Transfer of net profit to reserves
Balance at 31 December 2021
Share
capital
£m
286
–
–
–
–
–
–
286
–
–
–
–
–
286
Share
premium
£m
1,443
–
–
–
16
–
–
1,459
–
–
32
–
–
1,491
Shares
held in
treasury
£m
(739)
–
–
(50)
–
–
–
(789)
–
–
–
–
–
(789)
Capital
redemption
reserve(1)
Other
reserves(2)
£m
36
–
–
–
–
–
–
36
–
–
–
–
–
36
£m
168
–
–
–
–
4
–
172
–
–
–
5
–
177
Merger
reserve(1)
Net
profit
£m
£m
1,548
11,150
1,051
–
–
–
–
–
–
–
–
–
– (1,548)
11,150 1,051
– 1,046
–
–
–
–
–
–
– (1,051)
11,150 1,046
Reserves(3)
£m
Total
£m
5,986 19,878
1,051
–
(880)
(880)
(50)
–
16
–
4
–
1,548
–
6,654 20,019
– 1,046
(920)
(920)
32
–
5
–
1,051
–
6,785 20,182
(1) The capital redemption and merger reserve do not form part of the distributable reserves balance.
(2) Other reserves relate to equity instruments granted to employees of the Group under share based remuneration arrangements, and do not form part
of the distributable reserves balance.
(3) Distributable reserves at 31 December 2021 were £7,042m (2020: £6,916m) comprising net profit and reserves, net of shares held in treasury.
(4) Refer to note 13 of the RELX consolidated financial statements on page 161 for further dividend disclosure.
RELX PLC accounting policies
Basis of preparation
RELX PLC meets the definition of a qualifying entity under FRS 100
(Financial Reporting Standard 100) issued by the Financial
Reporting Council (FRC). Accordingly, the financial statements
are prepared in accordance with FRS 101 (Financial Reporting
Standard 101) – Reduced Disclosure Framework as issued by the
Financial Reporting Council, incorporating the Amendments to
FRS 101 issued by the FRC in July 2015 and the amendments to
company law made by The Companies, Partnerships and
Groups (Accounts and Reports) Regulations 2015.
The RELX PLC accounting policies under FRS 101 are set out below.
Investments
Fixed asset investments are stated at cost, less provision,
if appropriate, for any impairment in value. The fair value of the
award of share options and conditional shares over RELX PLC
ordinary shares to employees of the Group are treated as a
capital contribution.
Other assets and liabilities are stated at historical cost, less
provision, if appropriate, for any impairment in value.
As permitted by FRS 101, RELX PLC has taken advantage of the
disclosure exemptions available under that standard in relation to
share based payments, financial instruments, capital management,
presentation of comparative information in respect of certain
assets, presentation of a cash flow statement, standards not yet
effective, impairment of assets and related party transactions.
Shares held in treasury
The consideration paid, including directly attributable costs, for
shares repurchased is recognised as shares held in treasury and
presented as a deduction from total equity. Details of share capital
and shares held in treasury are set out in note 23 of the Group
consolidated financial statements.
Foreign exchange translation
Transactions entered into in foreign currencies are recorded
at the exchange rates applicable at the time of the transaction.
Taxation
Refer to note 9 on pages 155 to 158 of the consolidated financial
statements for the taxation accounting policies.
The RELX PLC financial statements have been prepared on the
historical cost basis.
Unless otherwise indicated, all amounts in the financial statements
are in millions of pounds.
The RELX PLC financial statements should be read in conjunction
with the Group consolidated financial statements and notes
presented on pages 138 to 184, which are also presented as the
RELX PLC consolidated financial statements. See the Basis of
preparation of the consolidated financial statements on page 143.
The RELX PLC financial statements are prepared on a going
concern basis, as explained on page 95.
As permitted by Section 408 of the Companies Act 2006, and
in compliance with The Companies, Partnerships and Groups
(Accounts and Reports) Regulations 2015, the Company has not
presented its own profit and loss account but has presented the
net profit for the year on the statement of financial position.
RELX Annual report and financial statements 2021Market segmentsGovernanceFinancial statements and other informationFinancial reviewCorporate ResponsibilityOverview 188
Notes to the RELX PLC financial statements
1 Investments
At 1 January 2020
Equity instruments granted to employees of the Group
At 1 January 2021
Equity instruments granted to employees of the Group
At 31 December 2021
2 Related party transactions
Subsidiary
undertaking
£m
18,318
4
18,322
5
18,327
Total
£m
18,318
4
18,322
5
18,327
All transactions with subsidiaries and the Group’s employees, which are related parties of RELX PLC, are reflected in these financial
statements. Transactions with key management personnel including share based remuneration costs are set out in note 25 of the
Group consolidated financial statements and details of the Directors’ remuneration are included in the Directors’ Remuneration
Report on pages 100 to 121.
3 Contingent liabilities
There are contingent liabilities in respect of debt of subsidiaries guaranteed by RELX PLC as follows:
Contingent liabilities
2021
£m
5,679
2020
£m
6,516
Financial instruments disclosures in respect of the debt covered by the above guarantees are given in note 17 of the Group’s consolidated
financial statements.
RELX Annual report and financial statements 2021 | Financial statements and other information RELX Annual report and financial statements 2021
189
Other financial
information
In this section
190 Summary financial information in euros
191 Summary financial information in US dollars
192 Alternative performance measures
Market segmentsGovernanceFinancial statements and other informationFinancial reviewCorporate ResponsibilityOverview 190
Summary financial information in euros
Basis of preparation
The Group’s consolidated financial information is presented in sterling. The summary financial information is a simple translation
of the Group’s consolidated financial statements into euros at the stated rates of exchange.
Income statement
Statement of
financial position
2021
1.16
2020
1.12
2019
1.14
2021
1.19
2020
1.12
2019
1.18
EXCHANGE RATES FOR TRANSLATION
Euro to sterling
Consolidated income statement
FOR THE YEAR ENDED 31 DECEMBER
Revenue
Operating profit
Profit before tax
Net profit attributable to RELX PLC shareholders
Adjusted operating profit
Adjusted profit before tax
Adjusted net profit attributable to RELX PLC shareholders
Adjusted earnings per ordinary share
Basic earnings per ordinary share
Net dividend per ordinary RELX PLC share paid in the year
Net dividend per ordinary RELX PLC share paid and proposed in relation to the financial year
Consolidated statement of cash flows
FOR THE YEAR ENDED 31 DECEMBER
Net cash from operating activities
Net cash used in investing activities
Net cash used in financing activities
Increase/(decrease) in cash and cash equivalents
Movement in cash and cash equivalents
At start of year
Increase/(decrease) in cash and cash equivalents
Exchange translation differences
At end of year
Adjusted cash flow
Consolidated statement of financial position
AS AT 31 DECEMBER
Non-current assets
Current assets
Total assets
Current liabilities
Non-current liabilities
Total liabilities
Net assets
2021
€m
8,403
2,185
2,085
1,706
2,564
2,409
1,959
€1.016
€0.885
€0.553
€0.578
2021
€m
2,338
(445)
(1,863)
30
99
30
5
134
2020
€m
7,963
1,708
1,661
1,371
2,325
2,146
1,728
€0.897
€0.712
€0.512
€0.526
2020
€m
1,788
(1,314)
(531)
(57)
163
(57)
(7)
99
2019
€m
8,976
2,395
2,106
1,716
2,840
2,508
2,061
€1.060
€0.883
€0.494
€0.521
2019
€m
2,381
(835)
(1,515)
31
127
31
5
163
2,587
2,250
2,738
2021
€m
13,686
2,805
16,491
4,460
8,194
12,654
3,837
2020
€m
13,295
2,547
15,842
4,899
8,590
13,489
2,353
2019
€m
13,386
2,885
16,271
7,018
6,669
13,687
2,584
RELX Annual report and financial statements 2021 | Financial statements and other information RELX Annual report and financial statements 2021
191
Summary financial information in US dollars
Basis of preparation
The Group’s consolidated financial information is presented in sterling. The summary financial information is a simple translation
of the Group’s consolidated financial statements into US dollars at the stated rates of exchange. It does not represent a restatement
under US GAAP which would be different in some significant respects.
Income statement
Statement of
financial position
2021
1.38
2020
1.28
2019
1.28
2021
1.35
2020
1.37
2019
1.33
EXCHANGE RATES FOR TRANSLATION
US dollars to sterling
Consolidated income statement
FOR THE YEAR ENDED 31 DECEMBER
Revenue
Operating profit
Profit before tax
Net profit attributable to RELX PLC shareholders
Adjusted operating profit
Adjusted profit before tax
Adjusted net profit attributable to RELX PLC shareholders
Adjusted earnings per American Depositary Share (ADS)
Basic earnings per ADS
Net dividend per RELX PLC ADS paid in the year
Net dividend per RELX PLC ADS paid and proposed in relation to the financial year
Consolidated statement of cash flows
FOR THE YEAR ENDED 31 DECEMBER
Net cash from operating activities
Net cash used in investing activities
Net cash used in financing activities
Increase/(decrease) in cash and cash equivalents
Movement in cash and cash equivalents
At start of year
Increase/(decrease) in cash and cash equivalents
Exchange translation differences
At end of year
Adjusted cash flow
Consolidated statement of financial position
AS AT 31 DECEMBER
Non-current assets
Current assets
Total assets
Current liabilities
Non-current liabilities
Total liabilities
Net assets
2021
US$m
9,997
2,600
2,480
2,030
3,050
2,866
2,331
$1.209
$1.053
$0.658
$0.687
2021
US$m
2,782
(530)
(2,216)
36
121
36
(4)
153
2020
US$m
9,101
1,952
1,898
1,567
2,657
2,452
1,975
$1.025
$0.814
$0.585
$0.602
2020
US$m
2,043
(1,501)
(607)
(65)
184
(65)
2
121
2019
US$m
10,079
2,689
2,364
1,926
3,188
2,816
2,314
$1.191
$0.991
$0.554
$0.585
2019
US$m
2,674
(938)
(1,701)
35
145
35
4
184
3,077
2,572
3,075
2021
US$m
15,526
3,182
18,708
5,060
9,296
14,356
4,352
2020
US$m
16,263
3,115
19,378
5,992
10,508
16,500
2,878
2019
US$m
15,088
3,252
18,340
7,910
7,517
15,427
2,913
Market segmentsGovernanceFinancial statements and other informationFinancial reviewCorporate ResponsibilityOverview 192
Alternative performance measures
RELX uses a range of alternative performance measures (APMs) in the reporting of financial information, which are not defined by
generally accepted accounting principles (GAAP) such as IFRS. These APMs are used by the Board and management as they believe
they provide relevant information in assessing the Group’s performance, position and cash flows, enable investors to track more clearly
the core operational performance of the Group, and provide a clear basis for assessing RELX’s ability to raise debt and invest in new
business opportunities.
Management also uses these financial measures, along with IFRS financial measures, in evaluating the operating performance of the
Group as a whole and of the individual business areas. These measures should not be considered in isolation from, or as a substitute for,
financial information presented in compliance with IFRS. The measures may not be directly comparable to similarly reported measures
by other companies.
See below for a list of key APMs used by the Group, along with a description of each measure, its purpose, details of the closest
equivalent IFRS measure (where applicable) and a reference to where it has been used in the financial statements.
APM
CLOSEST
EQUIVALENT
IFRS MEASURE
Income statement
DEFINITION AND RECONCILIATION TO CLOSEST EQUIVALENT IFRS MEASURE PURPOSE
Constant
currency
growth
No direct
equivalent
Constant currency growth measures are calculated using
the previous financial year’s full-year average and hedge
exchange rates.
Underlying
growth
No direct
equivalent
Underlying growth rates are calculated at constant currencies,
excluding the results of acquisitions until 12 months after
purchase, and excluding the results of disposals and assets
held for sale. Underlying revenue growth rates also exclude
exhibition cycling.
Reported revenue
growth
Components of reported
revenue growth
Underlying revenue
growth
Exhibitions cycling
Acquisitions
Disposals
Total revenue growth at
constant currency
Currency effect
Reported revenue
growth
Note
2021
£m
2020
£m
2021
%
2020
%
2
134
(764)
+2% –10%
481
48
47
(28)
(670)
(130)
80
(73)
+7% –9%
+1% –2%
+1% +1%
–
–1%
548
(414)
(793)
29
+8% –10%
–
–6%
134
(764)
+2% –10%
Provides a
measure of
year-on-year
growth excluding
the impact of
exchange rate
movements.
This is a key
financial measure
as it provides an
assessment of
year-on-year
growth excluding
the impact of
acquisitions,
disposals,
exhibition cycling
and exchange
rate movements.
ANNUAL REPORT AND
ACCOUNTS REFERENCE
Financial highlights
Chair’s statement
CEO report
Business overview
Market segments
Financial review
Directors’
remuneration report
Financial highlights
Chair’s statement
CEO report
Business overview
Market segments
Financial review
Directors’
remuneration report
RELX Annual report and financial statements 2021 | Financial statements and other information RELX Annual report and financial statements 2021 | Alternative performance measures
193
APM
CLOSEST
EQUIVALENT
IFRS MEASURE
Underlying
growth
(continued)
DEFINITION AND RECONCILIATION TO CLOSEST EQUIVALENT IFRS MEASURE PURPOSE
ANNUAL REPORT AND
ACCOUNTS REFERENCE
Reported adjusted
operating profit growth
Components of adjusted
operating profit growth
Underlying adjusted
operating profit growth
Acquisitions
Disposals
Total adjusted
operating profit growth
at constant currency
Currency impact
Reported adjusted
operating profit growth
Note
2021
£m
2020
£m
2021
%
2020
%
134
(415)
+6% –17%
269
11
(8)
(433) +13% –18%
–
+1%
–
–1%
4
(26)
272
(138)
(455) +13% –18%
1%
–7%
40
134
(415)
+6% –17%
Adjusted
operating
profit
Operating
profit
Operating profit before amortisation of acquired intangible
assets, acquisition-related items, and grossed up to exclude the
equity share of finance income, finance costs and taxes in joint
ventures. In 2020, we also excluded exceptional costs in the
Exhibitions business.
Operating profit
Adjustments:
Amortisation of acquired intangible
assets
Acquisition-related items
Reclassification of tax in joint ventures
Reclassification of net finance income
in joint ventures
Exceptional costs in Exhibitions
Adjusted operating profit
2020
2021
Note
£m
£m
2,3 1,884 1,525
2
2
298
21
7
376
(12)
5
–
–
(1)
183
2,210 2,076
This is the
key financial
measure used
by management
to evaluate
performance
and allocate
resources.
Financial highlights
Chair’s statement
CEO report
Business overview
Market segments
Financial review
Directors’
remuneration report
Note 2
Market segmentsGovernanceFinancial statements and other informationFinancial reviewCorporate ResponsibilityOverview
194
CLOSEST
EQUIVALENT
IFRS MEASURE
No direct
equivalent
No direct
equivalent
APM
Adjusted
operating
margin
Earnings
before
interest, tax,
depreciation
and
amortisation
(EBITDA)
DEFINITION AND RECONCILIATION TO CLOSEST EQUIVALENT IFRS MEASURE PURPOSE
ANNUAL REPORT AND
ACCOUNTS REFERENCE
Calculated as adjusted operating profit divided by revenue.
As above.
Financial highlights
Financial review
Chair’s statement
Financial review
Financial review
Financial highlights
Financial review
Provides a
measure of
the operating
performance of
the business that
is widely used
by relevant
stakeholders
in evaluating
company
performance.
Provides a
measure of the
Group’s interest
expense for the
funding of
business
operations that
is comparable
from year to
year.
Provides a
measure used
by management
to evaluate
performance
and allocate
resources.
Calculated as adjusted operating profit before depreciation of
property, plant and equipment (PPE) and right-of-use assets and
amortisation of internally developed intangible assets, including
pre-publication costs.
Adjusted operating profit
Total depreciation and other
amortisation*
EBITDA
Note
2020
2021
£m
£m
2 2,210 2,076
2,3
487
491
2,697 2,567
* Excludes amortisation of acquired intangibles. In 2020, £38m of
depreciation and other amortisation was classified as exceptional
in Exhibitions.
Adjusted
interest
expense
Interest
expense
Reported interest expense, less the pension financing charge and
option discounting expense, plus the share of net finance income
from joint ventures.
Interest expense
Pension financing charge
Option discounting expense
Share of net finance income from
joint ventures
Adjusted interest expense
Note
7
6
2021
£m
142
(9)
–
–
133
2020
£m
172
(10)
(1)
(1)
160
Adjusted
profit before
tax
Profit
before tax
Profit before tax before amortisation of acquired intangible
assets, acquisition-related items, reclassification of taxes in
joint ventures, net interest on the net defined benefit pension
obligation and disposals and other non-operating items. In 2020,
we also excluded exceptional costs in the Exhibitions business.
Profit before tax
Adjustments:
Amortisation of acquired intangible
assets
Acquisition-related items
Reclassification of tax in joint ventures
Net interest on net defined benefit
pension obligation and other
Disposals and other non-operating
items
Exceptional costs in Exhibitions
Adjusted profit before tax
Note
2021
£m
2020
£m
1,797 1,483
2
2
6
8
2
298
21
7
376
(12)
5
9
11
(55)
–
2,077
(130)
183
1,916
RELX Annual report and financial statements 2021 | Financial statements and other information
RELX Annual report and financial statements 2021 | Alternative performance measures
195
APM
CLOSEST
EQUIVALENT
IFRS MEASURE
Adjusted
tax charge
Income tax
expense
DEFINITION AND RECONCILIATION TO CLOSEST EQUIVALENT IFRS MEASURE PURPOSE
Tax expense excluding the deferred tax movements associated
with goodwill and acquired intangible assets, tax on other
acquisition-related items, reclassification of tax on joint ventures,
tax on net interest payments on the net defined benefit pension
obligation and on disposals and other non-operating items. In
2020, we also excluded the tax impact of exceptional costs in the
Exhibitions business.
Provides a
measure of the
Group’s tax
expense relating
to operating
activities.
ANNUAL REPORT AND
ACCOUNTS REFERENCE
Financial review
Tax charge
Adjustments:
Deferred tax movements on
goodwill and acquired intangible
assets*
Other deferred tax credits from
intangible assets**
Tax on acquisition-related items
Reclassification of tax in joint ventures
Tax on net interest on net defined
benefit pension obligation and other
Tax on disposals and other
non-operating items
Exceptional costs in Exhibitions
Adjusted tax charge
Note
9
2021
£m
(326)
2020
£m
(275)
22
35
(61)
(11)
(7)
(78)
(6)
(5)
(2)
(2)
2
1
–
(384)
3
(45)
(373)
* The adjusted tax charge excludes the movements in deferred tax assets and
liabilities related to goodwill and acquired intangible assets, but includes
the benefit of tax amortisation where available on acquired goodwill and
intangible assets.
** Movements on deferred tax liabilities arising on acquired intangible assets
that do not qualify for tax amortisation.
Effective
tax rate
Income tax
rate
Income tax expense expressed as a percentage of profit
before tax.
For a reconciliation between the net tax expense charged on
profit before tax and the theoretical amount that would arise
using the weighted average of tax rates applicable to accounting
profits and losses of the consolidated entities, refer to note 9.
Adjusted
effective
tax rate
No direct
equivalent
Calculated as the adjusted tax charge as a percentage of
adjusted profit before tax.
Financial review
Note 9
Financial review
Provides a
measure of the
Group’s tax
charge relative to
its profit before
tax that is
comparable from
year to year.
Provides a
measure of the
Group’s tax
charge relative
to its profit before
tax that is
comparable from
year to year.
Market segmentsGovernanceFinancial statements and other informationFinancial reviewCorporate ResponsibilityOverview
196
APM
Adjusted
net profit
attributable
to RELX PLC
shareholders
CLOSEST
EQUIVALENT
IFRS MEASURE
Net profit
attributable
to RELX PLC
shareholders
ANNUAL REPORT AND
ACCOUNTS REFERENCE
Financial highlights
Financial review
Note 10
DEFINITION AND RECONCILIATION TO CLOSEST EQUIVALENT IFRS MEASURE PURPOSE
Provides a
measure of
the Group’s
profitability after
tax attributable
to RELX PLC
shareholders.
Net profit attributable to RELX PLC shareholders before
amortisation of acquired intangible assets, other deferred tax
credits from intangible assets and items treated as exceptional,
acquisition-related items, net interest on the net defined benefit
obligation, disposals and other non-operating items, and in 2020,
exceptional costs in the Exhibitions business.
Net profit attributable to RELX PLC
shareholders
Adjustments (post-tax):
Amortisation of acquired
intangible assets
Other deferred tax credits from
intangible assets*
Acquisition-related items
Net interest on net defined benefit
pension obligation and other
Disposals and other non-operating
items
Exceptional costs in Exhibitions
Adjusted net profit attributable to
Note
2021
£m
2020
£m
1,471
1,224
316
395
(61)
10
(78)
(18)
7
9
(54)
–
(127)
138
2
Adjusted
earnings
per share
RELX PLC shareholders
1,689
1,543
* Movements on deferred tax liabilities arising on acquired intangible assets
that do not qualify for tax amortisation.
Earnings
per share
Adjusted net profit attributable to RELX PLC shareholders divided
by the weighted average number of shares.
Adjusted net profit attributable to
RELX PLC shareholders (£m)
Weighted average number of shares (m)
Adjusted earnings per share (p)
Note
2021
2020
1,689
10
1,543
10 1,928.0 1,926.2
80.1
87.6
Provides a
measure of the
Group’s earnings
per share that is
comparable from
year to year.
Financial highlights
Chair’s statement
CEO report
Business overview
Financial review
Note 10
RELX Annual report and financial statements 2021 | Financial statements and other information
RELX Annual report and financial statements 2021 | Alternative performance measures
197
APM
CLOSEST
EQUIVALENT
IFRS MEASURE
Cash flow statement
Adjusted
cash flow
Cash
generated
from
operations
DEFINITION AND RECONCILIATION TO CLOSEST EQUIVALENT IFRS MEASURE PURPOSE
Cash generated from operations plus dividends from joint
ventures less net capital expenditure on property, plant and
equipment (PPE) and internally developed intangible assets,
repayment of lease principal and sublease payments received
and excluding pension deficit payments and payments in relation
to acquisition-related items. Exceptional cash costs in the
Exhibitions business have also been excluded.
Provides a
measure of the
Group’s operating
cash flow that is
comparable from
year to year.
FINANCIAL STATEMENT
REFERENCE
Financial highlights
Financial review
Cash generated from operations
Adjustments:
Dividends received from joint ventures
Purchases of PPE
Proceeds from disposals of PPE
Expenditure on internally developed
intangible assets
Payments in relation to acquisition-
related items
Pension recovery payment
Repayment of lease principal*
Sublease payments received
Exceptional costs in Exhibitions
Adjusted cash flow
Note
2020
2021
£m
£m
11 2,476 2,264
15
16
20
(28)
5
31
(43)
–
(309)
(319)
46
44
(77)
1
52
67
45
(89)
2
51
2,230 2,009
* Excludes repayments and receipts in respect of disposal-related vacant
property and is net of sublease receipts.
Adjusted cash flow divided by adjusted operating profit.
Adjusted cash flow
Adjusted operating profit
Adjusted cash flow conversion
Note
2021
£m
2020
£m
2,230 2,009
2 2,210 2,076
101% 97%
Adjusted cash flow less net interest paid, cash tax paid,
acquisition-related payments and exceptional costs paid in
relation to the Exhibitions business.
Adjusted cash flow
Interest paid (net)
Cash tax paid*
Exceptional costs in Exhibitions
Acquisition-related items
Free cash flow
Note
9
2021
£m
2020
£m
2,230 2,009
(172)
(496)
(51)
(67)
1,672 1,223
(118)
(342)
(52)
(46)
* Net of cash tax relief on exceptional costs incurred in 2020 and
acquisition-related items and including cash tax impact of disposals.
Adjusted
cash flow
conversion
No direct
equivalent
Free cash
flow
Cash inflow
from
operating
activities
Provides a
measure of
turning operating
profit into cash.
Financial highlights
Business overview
Financial review
Financial review
Note 17
Provides a
measure of cash
flows that could be
used for organic
investment in
the business,
acquisitions,
distribution of
dividends, share
buybacks or the
repayment of debt.
Market segmentsGovernanceFinancial statements and other informationFinancial reviewCorporate ResponsibilityOverview
198
APM
CLOSEST
EQUIVALENT
IFRS MEASURE
Dividend
cover
No direct
equivalent
DEFINITION AND RECONCILIATION TO CLOSEST EQUIVALENT IFRS MEASURE PURPOSE
The number of times the total interim and proposed final
dividends for the year is covered by the adjusted earnings
per share.
It is calculated as adjusted earnings per share divided by ordinary
dividends per share.
Provides a
measure of the
Group’s earnings
relative to
ordinary dividend
payments.
FINANCIAL STATEMENT
REFERENCE
Financial review
Directors’ report
Adjusted earnings per share
Ordinary dividends per share
Dividend cover
Basic earnings per share
Ordinary dividends per share
Basic dividend cover
Note
2020
2021
10 87.6p 80.1p
13 49.8p 47.0p
1.7x
1.8x
Note
2020
2021
10 76.3p 63.5p
13 49.8p 47.0p
1.4x
1.5x
Net capital
employed
No direct
equivalent
Net goodwill and acquired intangible assets, net internally
developed intangible assets, net property, plant and equipment,
right-of-use assets and investments less net pension obligations
and working capital.
Provides a
measure of the
capital used in
operations.
Financial review
Goodwill and acquired intangible assets*
Internally developed intangible assets*
Property, plant and equipment*, right-of-
use assets* and investments
Net pension obligations
Working capital
Net capital employed
* Net of accumulated depreciation and amortisation.
Note
2021
£m
2020
£m
9,419 9,405
14 1,251 1,244
6
504
(269)
740
(624)
(1,095) (1,229)
9,810 9,536
Invested
capital/
capital
employed
No direct
equivalent
Net capital employed, adjusted to add back accumulated
amortisation and impairment of acquired intangible assets and
goodwill, to remove non-operating investments and the gross up
to goodwill in respect of deferred tax, and other items.
Used to calculate
the return on
invested capital
(see below).
Financial review
Directors’ report
Net capital employed
Accumulated amortisation and
impairment of acquired intangible
assets and goodwill
Non-operating investments
Deferred tax on goodwill and other
Invested capital/capital employed
Note
2021
£m
2020
£m
9,810 9,536
15
7,065 6,802
(259)
(107)
(1,234) (1,194)
15,534 14,885
RELX Annual report and financial statements 2021 | Financial statements and other information RELX Annual report and financial statements 2021 | Alternative performance measures
199
APM
Return on
invested
capital
(ROIC)
CLOSEST
EQUIVALENT
IFRS MEASURE
DEFINITION AND RECONCILIATION TO CLOSEST EQUIVALENT IFRS MEASURE PURPOSE
No direct
equivalent
Post tax adjusted operating profit expressed as a percentage of
average capital employed.
Adjusted operating profit
Tax at adjusted effective rate
Adjusted effective tax rate
Adjusted operating profit after tax
Average invested capital*
ROIC
Note
2021
(409)
2020
2 2,210 2,076
(405)
18.5% 19.5%
1,801 1,671
15,108 15,435
11.9% 10.8%
This is a key
financial
measure used by
management that
demonstrates
the efficiency of
the use of capital.
FINANCIAL STATEMENT
REFERENCE
Financial highlights
Business overview
Financial review
* Average of invested capital at the beginning and the end of the year,
retranslated at average exchange rates for the year.
Capital
expenditure
No direct
equivalent
Additions to property, plant and equipment and internally
developed intangible assets.
Additions to property, plant and
equipment
Additions to internally developed
intangible assets
Capital expenditure
Note
2021
£m
2020
£m
16
14
28
43
309
337
319
362
Provides a
measure of the
amounts invested
in new products
and related
infrastructure
across the
business.
Chair’s statement
Financial review
Directors’ report
Governance
Note 2
Market segmentsGovernanceFinancial statements and other informationFinancial reviewCorporate ResponsibilityOverview 200
APM
CLOSEST
EQUIVALENT
IFRS MEASURE
DEFINITION AND RECONCILIATION TO CLOSEST EQUIVALENT IFRS MEASURE
PURPOSE
Statement of financial position
Net debt
excluding
pensions /
net debt
including
pensions
No direct
equivalent
Net debt excluding pensions: debt less cash and cash equivalents,
related derivative financial instruments and finance lease
receivables.
Debt
Cash and cash equivalents
Related derivative financial
instruments
Finance lease receivables
Net debt excluding pensions
Pension deficit
Net debt including pensions
Note
2021
£m
2020
£m
11,21 6,167 7,123
(88)
(113)
11
(119)
11
(35)
11
(18)
(2)
11 6,017 6,898
624
6
269
6,286 7,522
Provides a
measure of the
Group’s level of
indebtedness.
FINANCIAL STATEMENT
REFERENCE
Financial highlights
Chair’s statement
Financial review
Governance
Directors’ report
Note 17
Leverage
ratios
No direct
equivalent
For details of the closest equivalent IFRS measures to net debt
and EBITDA, see above.
For the purpose of calculating leverage ratios, amortisation of
pre-publication costs, share of results in joint ventures, the equity
share of finance income, finance costs, taxes and amortisation
in joint ventures, and acquisition-related items are deducted
from EBITDA.
Provides a
measure of
the financial
leverage of
the Group.
Chair’s statement
Financial review
Governance
EBITDA
Pre-publication amortisation
EBITDA for financial covenant
Less joint venture adjusted
operating profit
Acquisition-related items**
EBITDA for leverage ratio
Note
3
2
2020
£m
2021
£m
2021
$m*
2020
$m*
2,697 2,567 3,722 3,286
(80)
(83)
(60)
(62)
2,637 2,505 3,639 3,206
(37)
(48)
(24)
(82)
2,552 2,422 3,522 3,100
(51)
(66)
(19)
(64)
Net debt excluding pensions (A)
Net debt including pensions (B)
EBITDA for financial covenant (C)
EBITDA for leverage ratio (D)
6,017 6,898 8,123 9,450
6,286 7,522 8,486 10,305
2,637 2,505 3,639 3,206
2,552 2,422 3,522 3,100
Leverage ratio used in
financial covenant (A/C)
Leverage ratio excluding
pensions (A/D)
Leverage ratio including
pensions (B/D)
2.3x
2.8x
2.3x
3.0x
2.4x
3.3x
* EBITDA and net debt have been translated from sterling to US dollars using,
respectively, average and year end exchange rates, as shown on page 191.
** Excluding gains of £27m (2020: £76m) from the revaluation of a put and call
option arrangement relating to a non-controlling interest in a subsidiary
within Legal.
RELX Annual report and financial statements 2021 | Financial statements and other information 201
In this section
202 Shareholder information
204 Shareholder information and contacts
IBC 2022 financial calendar
RELX Annual report and financial statements 2021Shareholder informationMarket segmentsGovernanceFinancial statements and other informationFinancial reviewCorporate ResponsibilityOverview 202
Shareholder information
Annual Report and Financial Statements 2021
The Annual Report and Financial Statements for RELX PLC for
the year ended 31 December 2021 are available on the Group’s
website, and from the registered office of RELX PLC shown on
page 204. Additional financial information, including the interim
and full-year results announcements, trading updates and
presentations, is also available on the Group’s website.
www.relx.com
The consolidated financial statements set out in the Annual Report
and Financial Statements are expressed in sterling, with summary
financial information expressed in euros and US dollars.
Share price information
RELX PLC’s ordinary shares are traded on the
London Stock Exchange.
Trading symbol
ISIN
PLC
REL
GB00B2B0DG97
RELX PLC’s ordinary shares are also traded on the
Euronext Amsterdam Stock Exchange.
Trading symbol
ISIN
PLC
REN
GB00B2B0DG97
RELX PLC’s ordinary shares are also traded on the
New York Stock Exchange in the form of American Depositary
Shares (ADSs), evidenced by American Depositary Receipts (ADRs).
Ratio to ordinary shares
Trading symbol
CUSIP code
PLC ADRs
1:1
RELX
759530108
The RELX PLC ordinary share price and the ADS price may be
obtained from the Group’s website, other online sources and the
financial pages of some newspapers.
For further information visit the ‘Investor Centre’ section
of the Group’s website www.relx.com/investorcentre
Information for registered
ordinary shareholders
Shareholder services
The RELX PLC ordinary share register is administered by Equiniti
Limited. Equiniti provides a free online portal for shareholders at
www.shareview.co.uk. Shareview allows shareholders to monitor
the value of their shareholdings, view their dividend payments and
submit dividend mandate instructions. Shareholders can also
submit their proxy voting instructions ahead of company meetings,
as well as update their personal contact details. Shareview
Dealing provides a share purchase and sale facility. Equiniti’s
contact details are shown on page 204.
Electronic communications
While hard copy shareholder communications continue to be
available to those shareholders requesting them, in accordance
with the Companies Act 2006 and the Company’s Articles of
Association, the Company uses the Group’s website as the main
method of communicating with shareholders. By registering their
details online at Shareview, shareholders can be notified by email
when shareholder communications are published on the Group’s
website. Shareholders can also use the Shareview website to
appoint a proxy to vote on their behalf at shareholder meetings.
Shareholders who hold their Company shares through CREST
may appoint proxies for shareholder meetings through the CREST
electronic proxy appointment service by using the procedures
described in the CREST manual.
Dividend mandates
Shareholders are encouraged to have their dividends paid
directly into a UK bank or building society account. This method
of payment reduces the risk of delay or loss of dividend cheques
in the post and ensures the account is credited on the dividend
payment date. A dividend mandate form can be obtained online
at www.shareview.co.uk, or by contacting Equiniti at the address
shown on page 204.
Equiniti has established a service for overseas shareholders
in over 90 countries, which enables shareholders to have
their dividends automatically converted from sterling and
paid directly into their nominated bank account. Further
details of this service, and the fees applicable, are available
at www.shareview.co.uk/info/ops or by contacting Equiniti
at the address shown on page 204.
Dividend Reinvestment Plan
Shareholders can choose to reinvest their Company
dividends by purchasing further shares through the Dividend
Reinvestment Plan (DRIP) provided by Equiniti. Further
information concerning the DRIP facility, together with
the terms and conditions and an application form can be
obtained online at www.shareview.co.uk/info/drip or by
contacting Equiniti at the address shown on page 204.
RELX Annual report and financial statements 2021 | Financial statements and other information RELX Annual report and financial statements 2021 | Shareholder information
203
How to avoid share fraud and boiler room scams
The FCA has issued some guidance on how to recognise and avoid
investment fraud:
§ Legitimate firms authorised by the FCA are unlikely to contact
you unexpectedly with an offer to buy or sell shares
§ If you receive an unsolicited phone call, do not get into a
conversation, note the name of the person and firm
contacting you and then end the call
§ Check the Financial Services Register available at
https://register.fca.org.uk/ to see if the person and firm
contacting you is authorised by the FCA. If you wish to call
the person or firm back, only use the contact details listed
on the Register
§ Call the FCA on 0800 111 6768 if the firm does not have any
contact details on the Register, or if you are told that they are
out of date
§ Search the list of unauthorised firms to avoid at
https://www.fca.org.uk/consumers/unauthorised-firms-
individuals#list
§ If you do buy or sell shares through an unauthorised firm, you
will not have access to the Financial Ombudsman Service or
the Financial Services Compensation Scheme
§ Consider obtaining independent financial and professional
advice before you hand over any money. If it sounds too good
to be true, it probably is
How to report a scam
If you are approached by fraudsters, please tell the FCA using
the share fraud reporting form at www.fca.org.uk/consumers/
report-scam-unauthorised-firm, where you can find out more
about investment scams. You can also call the FCA Consumer
Helpline on 0800 111 6768.
If you have already paid money to share fraudsters, you should
contact Action Fraud on 0300 123 2040 or use their online tool:
http://www.actionfraud.police.uk/report_fraud
Share dealing service
A telephone and internet dealing service is available through
Equiniti, which provides a simple way for UK resident shareholders
to buy or sell their shares. For telephone dealing call 0345 603
7037 between 8.30am and 5.30pm (UK time), Monday to Friday
(excluding public holidays in England and Wales), and for internet
dealing log on to www.shareview.co.uk/dealing. You will need
your shareholder reference number shown on your dividend
confirmation.
ShareGift
The Orr Mackintosh Foundation operates a charity share donation
scheme for shareholders with small parcels of shares whose
value makes it uneconomic to sell them. Details of the scheme
can be obtained from the ShareGift website at www.sharegift.org,
or by telephoning ShareGift on 020 7930 3737.
Sub-division of ordinary shares and share consolidation
On 28 July 1986, each RELX PLC ordinary share of £1 nominal
value was sub-divided into four ordinary shares of 25p each.
On 2 May 1997, each 25p ordinary share was sub-divided into two
ordinary shares of 12.5p each. On 7 January 2008, the ordinary
shares of 12.5p each were consolidated on the basis of 58 new
ordinary shares of 1451⁄116p nominal value for every 67 ordinary
shares of 12.5p each held.
Capital gains tax
The mid-market price of RELX PLC’s £1 ordinary shares on
31 March 1982 was 282p. Adjusting for the sub-divisions and
share consolidation referred to above results in an equivalent
mid-market price of 40.72p for each existing ordinary share of
1451⁄116p nominal value.
Warning to shareholders – unsolicited
investment advice
§ From time to time shareholders may receive unsolicited calls
from fraudsters
§ Fraudsters use persuasive and high-pressure tactics to lure
investors into scams, sometimes known as boiler room scams
§ They may offer to sell shares that turn out to be worthless or
non-existent, or to buy shares at an inflated price in return for
an upfront payment
§ While high profits are promised, if you buy or sell shares in this
way you will probably lose your money
§ Thousands of people contact the Financial Conduct Authority
(FCA) about investment fraud each year, with victims losing an
average of £32,000
Market segmentsGovernanceFinancial statements and other informationFinancial reviewCorporate ResponsibilityOverview 204
Shareholder information and contacts
Information for holders of ordinary shares
held through Euroclear Nederland
Shareholders with enquiries concerning RELX PLC ordinary
shares that are not held directly on the Register of Members and
are ultimately held through Nederlands Centraal Instituut voor
Giraal Effectenverkeer BV (Euroclear Nederland) should direct
their enquiries to the broker, financial intermediary, bank or
other financial institution that holds the shares on their behalf.
Dividend Reinvestment Plan
Shareholders can choose to reinvest their dividends by purchasing
shares through the Dividend Reinvestment Plan (DRIP) provided
by ABN AMRO Bank NV. Further information concerning the DRIP
facility can be obtained via as.exchange.agency@nl.abnamro.com.
Information for ADR holders
ADR shareholder services
Enquiries concerning RELX PLC ADRs should be addressed
to the ADR Depositary, Citibank NA, at the address shown below.
Dividend payments on RELX PLC ADRs are converted into US
dollars by the ADR Depositary.
Annual Report on Form 20-F
The RELX Annual Report on Form 20-F is filed electronically with
the United States Securities and Exchange Commission. A copy
of the Form 20-F is available on the Group’s website, or from the
ADR Depositary at the address shown below.
Dividend currency elections
Shareholders appearing on the Register of Members or holding
their shares through CREST will continue to receive their
dividends in Pounds Sterling, but will have the option to elect
to receive their dividends in Euro. Euro payments will be made
by cheque only.
Shareholders who appear on the Register of Members and wish
to receive their dividend in Euro should contact our Registrar,
Equiniti on 0371 384 2960 (UK) or +44 (0) 121 415 0165 (from outside
the UK) for a dividend election form and further information
regarding the Euro dividend option. Alternatively, shareholders
can view and update their current dividend elections by registering
for a Shareview Portfolio at www.shareview.co.uk/register.
Shareholders who hold their shares through CREST and wish to
receive their dividend in Euro, must do so by following the CREST
Elections process.
Shareholders who hold RELX PLC shares through Euroclear
Nederland (via banks and brokers), will automatically receive their
dividends in Euro, but will have the option to elect to receive their
dividends in Pounds Sterling.
Shareholders who hold their shares through Euroclear Nederland
and wish to receive their dividends in Pounds Sterling should
contact their broker, financial intermediary, bank or other
financial institution that holds the shares on their behalf.
Contacts
RELX PLC
Head Office and Registered Office
1-3 Strand
London WC2N 5JR
United Kingdom
Tel: +44 (0)20 7166 5500
Fax: +44 (0)20 7166 5799
Auditor
Ernst & Young LLP
1 More London Place
London SE1 2AF
United Kingdom
Registrar
Equiniti Limited
Aspect House
Spencer Road
Lancing BN99 6DA
West Sussex
United Kingdom
www.shareview.co.uk
Tel: 0371 384 2960 (UK callers)
Tel: +44 121 415 0165 (callers outside the UK)
Listing/paying agent for shares listed on Euronext Amsterdam
held through Euroclear Nederland
ABN AMRO Bank NV
Department Corporate Broking and Issuer Services HQ7212
Gustav Mahlerlaan 10
1082 PP Amsterdam
The Netherlands
Email: as.exchange.agency@nl.abnamro.com
RELX PLC ADR Depositary
Citibank Depositary Receipt Services
PO Box 43077
Providence, RI 02940-3077
USA
www.citi.com/dr
Email: citibank@shareholders-online.com
Tel: +1 877 248 4237
+1 781 575 4555 (callers outside the US)
RELX Annual report and financial statements 2021 | Financial statements and other information 2022 financial calendar
10 February Results announcement for the year ended 31 December 2021
21 April
21 April
28 April
29 April
17 May
23 May
7June
10June
28 July
4 Aug*
5 Aug*
Trading update issued in relation to the 2022 financial year
Annual General Meeting
Ex-dividend date – 2021 final dividend, ordinary shares and ADRs
Record date – 2021 final dividend, ordinary shares and ADRs
Dividend currency and DRIP election deadline
Euro dividend equivalent announcement
Payment date – 2021 final dividend, ordinary shares
Payment date – 2021 final dividend, ADRs
Interim results announcement for the six months to 30 June 2022
Ex-dividend date – 2022 interim dividend, ordinary shares and ADRs
Record date – 2022 interim dividend, ordinary shares and ADRs
* Please note that these dates are provisional and subject to change. The 2022 interim dividend payment dates in respect of ordinary shares and ADRs will be confirmed by the
Company in its 2022 Interim Results announcement, currently scheduled for release on 28 July 2022.
Dividend history
The following tables set out dividends paid (or proposed) in relation to the three financial years 2019–2021.
ORDINARY SHARES
Final dividend for 2021**
Interim dividend for 2021
Final dividend for 2020
Interim dividend for 2020
Final dividend for 2019
Interim dividend for 2019
pence per PLC
ordinary share
Euro equivalent
(€)
35.5 ***
14.3
33.40
13.60
32.10
13.60
0.167
0.387
0.151
0.362
0.148
** Proposed dividend, to be submitted for approval at the Annual General Meeting of RELX PLC in April 2022.
*** Payment will be determined using the appropriate £/€ exchange rate on 23 May 2022.
ADRS
Final dividend for 2021***
Interim dividend for 2021
Final dividend for 2020
Interim dividend for 2020
Final dividend for 2019
Interim dividend for 2019
*** Payment will be determined using the appropriate £/US$ exchange rate on 7 June 2022.
$ per PLC ADR
***
01965820
0.4706720
0.18081
0.395086
0.16398
Payment date
7 June 2022
8 September 2021
3 June 2021
2 September 2020
28 May 2020
2 September 2019
Payment date
10 June 2022
13 September 2021
8 June 2021
8 September 2020
2 June 2020
5 September 2019
Credits
Designed and produced by
Conran Design Group
Cover graphic
Courtesy of Ravel Law, part of Lexis Nexis Legal & Professional
Photography:
Board by Douglas Fry, Piranha Photography
Page 18 Courtesy of DRÄXLMAIER Group
Printed by
Pureprint Group, ISO14001, FSC® certified and CarbonNeutral®
Printed on Revive 100 Silk which is made from 100% recovered
waste. All of the pulp is bleached using an elemental chlorine
free process (ECF). Printed in the UK by Pureprint using its
environmental printing technology; vegetable inks were used
throughout. Pureprint is a CarbonNeutral® company. Both
manufacturing mill and printer are ISO14001 registered and are
Forest Stewardship Council® (FSC®) chain-of-custody certified.
www.relx.com
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